Is There Still a Catholic Earnings Premium for Men? Evidence From Australia

Abstract

Studies using large‐scale survey data from Australia, Germany, and the United States have found evidence that religious affiliation influences earnings, with Catholic men benefitting from a wage premium. This paper examines religious affiliation and human capital formation for males aged 25 and 54 using six waves of data from the Household Income Labour Dynamics Australia (HILDA) survey. This study examines the impact of religious affiliation on male earnings through three main approaches: (i) estimating male earnings functions using various religious groupings, (ii) stratifying the analysis by wave to detect potential changes over time, and (iii) evaluating differences in the return to human capital investment among Anglicans, Catholics, and men with other religious affiliations. Contrary to existing studies, we find no evidence of a Catholic wage premium.