Economics of Religion: Lessons Learned

Transcription

1 Economics of Religion: Lessons Learned Carmel U. Chiswick George Washington University ASREC Washington, DC, April 2013

2 Scientific Method 1. Observation Based on available data, qualitative or quantitative 2. Theory Thank you Azzi, Ehrenberg and Iannaccone. 3. Hypotheses 4. Empirical Tests Using different data, new applications 5. Conclusions: Support or Modify Theory Exciting when theory is supported. Exciting when new Insights are gained. C. Chiswick 2

3 Lessons Learned from Research: Outline of Presentation 1. Scope of the Economics of Religion (what it can and can not do) 2. Generalizing about Beliefs Afterlife good 3. Pluralism vs. Religious Monopoly 4. Religious and secular human capital 5. Immigrant Religion and Assimilation 6. Concluding Remarks C. Chiswick 3

4 Persistence over Time and Space I: Judaism s Great Tradition The Great Tradition defines Judaism. It can be interpreted but not changed. Hebrew Torah (The Five Books of Moses, Pentateuch) Scriptures (the Hebrew Bible) Talmud (Mishna, Gemorra, Commentators) Other religious literature (e.g., liturgy, Haggadah, Shulchan Aruch, Responsa) Israel (the People, the Land) Includes Holidays and Rituals specified in Torah Sabbath Holidays: Rosh HaShanah, Yom Kipur, Passover, Shavuot (Pentecost), Sukkot Dietary laws (kashrut) C. Chiswick 4

5 Persistence over Time and Space II: Judaism s Small Traditions Small Traditions are religious expressions specific to a time and place For about 900 years most European Jews were either Ashkenazi (Yiddish) or Sephardi (Ladino) Other Small Traditions include Mizrachi (Judeo-Arabic), Ethiopian (Amharic), Romaniote (Judeo-Greek), etc. Small Traditions are not shared by all Jews Synagogue architecture & customs (e.g., seating, decorations) Liturgy (e.g., insertions and omissions, melodies, translations) Cuisine, traditional Sabbath and holiday foods (e.g., All Jews eat matza on Passover, but not all traditions include chicken soup with matza balls.) C. Chiswick 5

6 Persistence over Time and Space III: Understanding Religious Change Most Jewish immigrants to the US ( ) came from Ashkenaz. Yiddish language except for ritual and Torah study. Eastern European Ashkenazi Small Tradition suited to a very different economic environment (enclave, anti-semitism, low secular education) Today s American Judaism is a new Small Tradition English language, sometimes even supplementing ritual and Torah study. Reform, Conservative, Orthodox synagogue movements fit the US economic environment (high-wage, high-education, assimilated workplace and community life) Other Small Traditions? (Ultra-Orthodox, Israeli) Lessons Learned Economic environment affects Small Traditions but has little effect on the Great Tradition Great and Small Traditions are inseparable, not always seen as distinct Distinction relevant in times of economic change, religious transitions Changes in Small Tradition need not imply watering down of religion. C. Chiswick 6

7 Religion is a bundle of three economic goods. -- Azzi & Ehrenberg Inseparable, but with different economic characteristics 1. Affiliation (Social Good) Club Theory 2. Religiosity (Spiritual Good) Theory of self-produced goods. 3. Mortality?? (Afterlife Good) Investment beyond the lifespan A&E focused on this motive Puzzle: Jews highly responsive without an Afterlife (Ehrenberg). Jewish continuity generates this investment motive. Evidence suggests that each is important Choice of variable may depend on questions asked (dependent variable) Proxy variables may be different for different religions e.g., Church attendance, belief in afterlife, literal interpretation of the Bible work much better for Christians than for Jews. C. Chiswick 7

8 Pluralism vs. State Religion Possible alternatives Multiple official religions (Europe, Israel) Oligopoly, Cartels Germany: Tax rebates for the disaffiliated Dissenting religions under the radar (Adam Smith) Officially Recognized Dissenting Religion (European Judaism) Monopoly characteristics Chief Rabbi as head of the community Individuals are members by default Pluralism characteristics Congregational structure of synagogues, study houses Competitive market for clergy Responsa system C. Chiswick 8

9 Religious vs. Secular Human Capital Human Capital Complementarities Secular human capital is a bundle of mutual complements. Religious human capital may or may not be a complement. Anti-complementarity: religious group is disadvantaged Complementarity: successful religious groups Complementarities in Education Teaching and learning methodologies (e.g., rote vs. explanation, questioning) Curriculum content (e.g., analytical skills, creativity, literature, history) Insight into Jewish History (Botticini & Eckstein, The Chosen Few) Jewish religious education included literacy in a time and place where most people were illiterate. Jews left farming for urban occupations where literacy complemented secular skills. (Religion as a factor in occupational clustering) C. Chiswick 9

10 Immigrant Religion and Assimilation Religious human capital can be transferable or countryspecific Transferability depends on complementarity between religious and secular human capital in each country Religious adaptions raise complementarity between religious and secular human capital The same model applies to changes over time in the economic environment New technological era (Economic Development) New types of secular education (Transformative) New wage levels (incentives to invest in religious human capital) C. Chiswick 10

11 Policy Conclusions 1. Great vs. Small Tradition Helpful perspective for coping with major changes. 2. Religious and secular human capital Complementarities in educational methods, Complementarities with values, skills relevant to society and workplace. 3. Immigrant Religion and Assimilation Assimilation enhances complementarities and reduces conflicts. Balancing tradition and change 4. Pluralism vs. Religious Monopoly Understanding religious freedom 5. Spiritual, Social, & Afterlife Goods Religiosity, Affiliation, & Mortality respond to different economic influences. Measurement requires religion-specific or religion-neutral proxy variables. C. Chiswick 11