Personal liberties, religiosity and effort

Abstract

In this paper we study the role of religiosity in influencing the choice of labor effort. Many religions promote restrictions on personal liberties such as divorce, abortion, gender parity, or gay marriage. We assume that the higher the degree of religiosity of an individual the less he enjoys such personal liberties, and moreover the less he likes to be in a society which allows such liberties. The model implies that under some simple conditions, individual labor supply is decreasing in the level of religiosity and that this negative relationship is enhanced by the width of liberties. We show empirically that this holds and that the size of the effect is large. Specifically, we construct an index of personal liberties and find solid evidence in support of the joint effect of religiosity and liberties on labor effort. Our empirical results indicate that negative externalities experienced by religious individuals when society allows for or practices such personal liberties are an important part of the effect of liberties on their economic choices