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The impact of birthplace diversity on prosociality: Ingroups versus outgroups

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  • Zhang, Zhijian
  • Ding, Yuli
  • Wu, Shu

Abstract

How does immigration shape prosociality? This study investigates the impact of birthplace diversity on households’ private provision of financial support to different social groups in China. Linking nationally representative surveys with prefectural socio-economic data and census information, we employ a shift-share instrumental variable approach alongside fixed effects to explore this relationship. Exposure to increased birthplace diversity leads to more households providing financial assistance to friends and strangers, but not to relatives. The favorable impacts stem primarily from within-group diversity and fractionalization, rather than from between-group diversity and polarization. Economic interdependence and broader inclusiveness, as opposed to social trust or outgroup threat, likely drive these effects. The observed effect is more pronounced among households with higher educational attainment, superior economic status, and in cities receiving fewer distant immigrants. Distinguishing dimensions of diversity and their contexts is crucial for understanding immigration’s social implications.

Suggested Citation

  • Zhang, Zhijian & Ding, Yuli & Wu, Shu, 2025. "The impact of birthplace diversity on prosociality: Ingroups versus outgroups," Journal of Comparative Economics, Elsevier, vol. 53(3), pages 643-666.
    • Handle: RePEc:eee:jcecon:v:53:y:2025:i:3:p:643-666
    DOI: 10.1016/j.jce.2025.04.005
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    Keywords

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    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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