Religious decrees and financial integration

Religious rules and decrees can influence the economic integration of immigrants and minorities. In Islam, there is a prohibition against charging or paying interest (Riba). This religious norm may limit Muslims' participation in capital markets in Western countries and has sparked a debate about alternative financial institutions and solutions. However, knowledge about the extent to which individuals adhere to this prohibition and how it affects them is limited. It is also a challenging area to study through interviews and surveys, as responses may not always be reliable.

This project utilizes comprehensive registry data on paying members of various religious communities to examine whether these individuals differ from others with similar characteristics in terms of interest payments and income.

Researchers: Niklas Bengtsson, Per-Anders Edin, Olof Åslund