Religion and the rate of return to human capital: evidence from Australia

Abstract

We estimated the relationship between religion and the rate of return to human capital for Australia. Data from the Household Income Labour Dynamics Survey were analysed for men aged between 25 and 54 years. Conventional human capital functions were estimated using Ordinary Least Squares (OLS). Our results suggest that Catholic men benefit from a wage premium of 6.7%, controlling for an extensive range of controls.

Keywords:

• religion
• wages
• human capital

JEL Classification:

• J30
• J39

Acknowledgments

This article uses unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) survey. The HILDA Project was initiated and is funded by the Australian Government Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and is managed by the Melbourne Institute of Applied Economic and Social Research (MIAESR). The findings and views reported in this article, however, are those of the authors and should not be attributed to either FaHCSIA or the MIAESR.