Religiosity as compensatory capital in shaping the connection between income and well-being: a study using world values survey data

This study introduces the concept of religiosity as compensatory capital, a psychological and social resource associated with buffering the impact of financial strain on well-being. Analysing Wave 7 of the World Values Survey (81,499 individuals across 61 countries), we employ multilevel modelling to examine how religiosity moderates the well-established income–well-being relationship, accounting for the nested structure of individuals within countries. Results confirm that higher income is associated with greater well-being and, conversely, with lower religiosity. Moderation analysis reveals that stronger religious beliefs are associated with a significantly weaker positive association between income and well-being. This suggests that for highly religious individuals, well-being is derived less from material success and more from faith and community, reflecting a compensatory pattern, particularly among low-income groups. The findings challenge the classic inverted U-shaped hypothesis of religiosity and highlight the need for culturally sensitive, faith-aware policy interventions aimed at enhancing well-being in economically disadvantaged communities.