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ISSN: 2247-6172;<br />

ISSN-L: 2247-6172<br />

Review <strong>of</strong> Applied Socio- Economic Research<br />

(Volume 5, Issue 1/ 2013), pp. 23<br />

URL: http://www.reaser.eu<br />

e-mail: editors@reaser.eu<br />

where i is <strong>the</strong> <strong>in</strong>dividual <strong>in</strong>dex, Ed i is a dummy variable, tak<strong>in</strong>g <strong>the</strong> value <strong>of</strong> 1 if <strong>the</strong> <strong>in</strong>dividual i<br />

has <strong>the</strong> highest level <strong>of</strong> education (University, with or without degree) <strong>and</strong> 0 o<strong>the</strong>rwise (lower<br />

education). R i is a dummy variable (Catholic) tak<strong>in</strong>g <strong>the</strong> value <strong>of</strong> 1 if <strong>the</strong> <strong>in</strong>dividual is Catholic <strong>and</strong><br />

0 if Protestant. When we use religiosity <strong>in</strong> place <strong>of</strong> religious affiliation (Catholic*Religious), <strong>the</strong><br />

left out category is religious Protestants. Z i is a vector <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> o<strong>the</strong>r covariates partly<br />

described <strong>in</strong> Table 1, <strong>and</strong> i<br />

is <strong>the</strong> error term. Follow<strong>in</strong>g <strong>the</strong> <strong>the</strong>oretical model we also <strong>in</strong>clude an<br />

<strong>in</strong>teraction term between religious affiliation <strong>and</strong> <strong>the</strong> development dummy concern<strong>in</strong>g <strong>the</strong><br />

<strong>in</strong>dustrial sector (Catholic*Industry). In fact, <strong>in</strong>dustrialization may lead to <strong>the</strong> wide-spread<strong>in</strong>g <strong>of</strong><br />

modern values <strong>and</strong> generally religion may become less conservative <strong>and</strong> follow <strong>the</strong> cultural<br />

changes <strong>in</strong>duced by <strong>the</strong> modernization process. In particular, coherently with <strong>the</strong> hypo<strong>the</strong>sis H1,<br />

<strong>the</strong> religious variables - Catholic <strong>and</strong> Catholic*Religious - are expected to have a negative sign<br />

when Catholic religion is more conservative than Protestantism. Moreover, <strong>in</strong> light <strong>of</strong> <strong>the</strong> follow<strong>in</strong>g<br />

hypo<strong>the</strong>ses – H2, H3 – <strong>the</strong> total marg<strong>in</strong>al effect <strong>of</strong> religion on <strong>the</strong> probability <strong>of</strong> university<br />

education with respect to lower education is expected to be positive <strong>in</strong> case <strong>of</strong> less traditional<br />

Catholic religion <strong>and</strong> a sufficiently developed economy. While it is expected to be negative if<br />

Catholic religion is more traditional <strong>and</strong> <strong>the</strong> economy is not sufficiently developed.<br />

As religion can be endogenous with education, it has also been followed a two-stage estimation<br />

procedure where <strong>in</strong> <strong>the</strong> first stage religion is <strong>the</strong> dependent variable (Catholic_endog, model 3 <strong>in</strong><br />

Table 2 below) <strong>and</strong> <strong>the</strong> <strong>in</strong>struments are some variables from Fox’s survey (Fox, 2008) 3 . They<br />

embody government <strong>in</strong>volvement <strong>in</strong> religion (GIR henceforth). These variables are believed to<br />

affect both religious adherence <strong>and</strong> religiosity. The first group <strong>of</strong> <strong>in</strong>struments measures <strong>the</strong> <strong>of</strong>ficial<br />

role <strong>of</strong> religion <strong>in</strong> <strong>the</strong> state <strong>and</strong> consists <strong>of</strong> two dummies - GIR1, GIR3 - which correspond<br />

respectively to <strong>the</strong> follow<strong>in</strong>g regimes: separationist where <strong>the</strong>re is <strong>of</strong>ficial separation between state<br />

<strong>and</strong> religion <strong>and</strong> <strong>the</strong> state is marg<strong>in</strong>ally hostile toward religion; civil religion where one religion<br />

un<strong>of</strong>ficially is <strong>the</strong> state’s civil religion. The dummy Limitations <strong>in</strong>dividuates whe<strong>the</strong>r <strong>the</strong> state<br />

limits some religions with respect to o<strong>the</strong>rs. F<strong>in</strong>ally, we consider a group <strong>of</strong> two dummies<br />

identify<strong>in</strong>g different types <strong>of</strong> religious legislation, which among o<strong>the</strong>r aspects measures legislation<br />

<strong>of</strong> religious law as state law, f<strong>in</strong>ancial support for religion, religious education, <strong>and</strong> <strong>the</strong><br />

comm<strong>in</strong>gl<strong>in</strong>g <strong>of</strong> religious <strong>and</strong> political positions (Fox, 2008, p. 53). These dummies are<br />

Legislation3 captur<strong>in</strong>g <strong>the</strong> presence <strong>of</strong> optional religious education <strong>in</strong> public school <strong>and</strong><br />

government fund<strong>in</strong>g <strong>of</strong> religious schools or <strong>of</strong> religious education <strong>in</strong> secular schools, <strong>and</strong><br />

Legislation4, which entails that religious organizations must register with government <strong>in</strong> order to<br />

obta<strong>in</strong> <strong>of</strong>ficial status besides <strong>the</strong> f<strong>in</strong>ancial support to religious education. As religion can be<br />

endogenous also with respect to children’s educational level, we have also estimated a biprobit<br />

model, where religion is <strong>the</strong> dependent variable <strong>and</strong> education <strong>the</strong> explanatory one but <strong>the</strong> results<br />

are not significant 4 . In <strong>the</strong> second stage we used <strong>the</strong> fitted values for religion <strong>in</strong> <strong>the</strong> estimation <strong>of</strong><br />

education.<br />

3 As to <strong>the</strong> issue <strong>of</strong> religion endogeneity <strong>and</strong> <strong>of</strong> <strong>the</strong> choice <strong>of</strong> <strong>in</strong>strumental variables we refer to <strong>the</strong> contribution by<br />

McCleary <strong>and</strong> Barro (2006).<br />

4 This robustness analysis is available from <strong>the</strong> authors upon request.

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