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Diversity and Donations: The Effect of Religious and Ethnic Diversity on Charitable Giving

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  • James Andreoni
  • Abigail Payne
  • Justin Smith
  • David Karp

Abstract

Using 10-year neighborhood-level panels derived from personal tax records in Canada, we find that local ethnic and religious diversity are inversely related to charitable donations. A 10 percentage point increase in ethnic diversity is associated with a 14% reduction in donations. The same increase in religious diversity implies 10% lower donations. The ethnic diversity effect is driven by non-minorities, especially in high income and low education areas. The religious diversity effect is driven by Catholics, especially in high income and high education areas. Interestingly, despite its depressive effect on dollars donated, diversity appears uncorrelated with the likelihood of giving.

Suggested Citation

  • James Andreoni & Abigail Payne & Justin Smith & David Karp, 2012. "Diversity and Donations: The Effect of Religious and Ethnic Diversity on Charitable Giving," The Centre for Market and Public Organisation 12/289, The Centre for Market and Public Organisation, University of Bristol, UK.
  • Handle: RePEc:bri:cmpowp:12/289
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    Cited by:

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    3. Dimitrova-Grajzl Valentina & Grajzl Peter & Guse A. Joseph & Smith J. Taylor, 2016. "Racial Group Affinity and Religious Giving: Evidence from Congregation-Level Panel Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 689-725, April.
    4. Asad, Sher Afghan & Banerjee, Ritwik & Bhattacharya, Joydeep, 2020. "Do Workers Discriminate against Their Out-group Employers? Evidence from the Gig Economy," IZA Discussion Papers 13012, Institute of Labor Economics (IZA).
    5. Matz Dahlberg & Karin Edmark & Heléne Lundqvist, 2012. "Ethnic Diversity and Preferences for Redistribution," Journal of Political Economy, University of Chicago Press, vol. 120(1), pages 41-76.
    6. Gunnar Gutsche, 2019. "Individual and Regional Christian Religion and the Consideration of Sustainable Criteria in Consumption and Investment Decisions: An Exploratory Econometric Analysis," Journal of Business Ethics, Springer, vol. 157(4), pages 1155-1182, July.
    7. Polipciuc, Maria & Cörvers, Frank & Montizaan, Raymond, 2021. "Peers' Race in Adolescence and Voting Behavior," IZA Discussion Papers 14140, Institute of Labor Economics (IZA).
    8. Benos, Nikos & Kammas, Pantelis, 2018. "Workers of the world unite (or not?) The effect of ethnic diversity on the participation in trade unions," MPRA Paper 84880, University Library of Munich, Germany.
    9. Mylonidis, Nikolaos & Chletsos, Michael & Barbagianni, Vanessa, 2019. "Financial exclusion in the USA: Looking beyond demographics," Journal of Financial Stability, Elsevier, vol. 40(C), pages 144-158.
    10. Simixhiu, Amantia & Ziegler, Andreas, 2018. "On the relevance of income and behavioral factors for absolute and relative donations: A framed field experiment," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181600, Verein für Socialpolitik / German Economic Association.
    11. Nicolas J. Duquette & Enda Hargaden, 2018. "Inequality, Social Distance, and Giving," Working Papers 2018-03, University of Tennessee, Department of Economics.
    12. Jones, Daniel B. & Zhan, Crystal, 2020. "Ethnic diversity and citizens’ support for local public good provision: Evidence from California parcel tax elections," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 108-130.
    13. Duquette, Nicolas J. & Hargaden, Enda P., 2021. "Inequality and giving," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 189-200.
    14. Rose Anne Devlin & Wenzhuo Zhao, 2016. "Philanthropic Behaviour of Quebecers," Working Papers 1607E, University of Ottawa, Department of Economics.
    15. Kok, Lucille & Oosterbaan, Veerle & Stoker, Hester & Vyrastekova, Jana, 2020. "In-group favouritism and social norms: Public goods experiments in Tanzania," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 85(C).
    16. Lücke, Matthias & Omar Mahmoud, Toman & Peuker, Christian, 2012. "Identifying the motives of migrant philanthropy," Kiel Working Papers 1790, Kiel Institute for the World Economy (IfW).

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    More about this item

    Keywords

    : diversity; giving; charitable donations;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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