An Evangelical Anomaly: Religious Observance and Intertemporal Choice

Abstract

Educational achievement is positively correlated with religious devotion. However, religious sects that are more devoted have, on average, lower levels of education. Evangelical Protestants, for example, have the highest level of religious devotion but the lowest level of educational achievement. Previous research explains this by proposing that education enhances the gains to social interaction while substituting for religious belief. We examine an alternative hypothesis, where religion is a moderator of time preference across potential investments, including savings, social capital, and human capital. We use the Center on Philanthropy Panel Study and wealth supplements of the Panel Study of Income Dynamics to observe household investments of time and money. Our results suggest that education is the anomaly, and that Evangelical Protestants do not behave differently than other religious groups in areas of altruism or saving. Instead, we find that differences in the level of devotion to religious activities best explains group behavior.