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Charitable donations by the self-employed

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  • Matthias Tietz

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  • Simon Parker

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Abstract

This article analyzes an important aspect of the social behavior of the self-employed in America. We ask whether the self-employed express their social responsibility to society by giving more to charity than the general population, and if so which charitable causes they give to. We use social identity theory to generate hypotheses about the determinants and objectives of charitable giving among members of this socially and economically important group. Testing these hypotheses with nationally representative, longitudinal US data, we find that the American self-employed are indeed more likely to exhibit social responsibility toward their community by giving to charities than the general population. While the self-employed support broadly similar charities to the general population, they give substantially more to organizations which: address issues in the local community; provide health care; and serve the needy. We trace out implications of our findings for scholars, practitioners, and policy-makers. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Matthias Tietz & Simon Parker, 2014. "Charitable donations by the self-employed," Small Business Economics, Springer, vol. 43(4), pages 899-916, December.
  • Handle: RePEc:kap:sbusec:v:43:y:2014:i:4:p:899-916
    DOI: 10.1007/s11187-014-9580-6
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    File URL: http://hdl.handle.net/10.1007/s11187-014-9580-6
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    References listed on IDEAS

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    Cited by:

    1. Bittschi, Benjamin & Borgloh, Sarah & Moessinger, Marc-Daniel, 2016. "On tax evasion, entrepreneurial generosity and fungible assets," ZEW Discussion Papers 16-024, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    Charitable giving; Donation; Self-employed; Social identity theory; D190; L26; L260; M140;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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