Racial Group Affinity and Religious Giving: Evidence from Congregation-Level Panel Data

Valentina Dimitrova-Grajzl, Peter Grajzl, A. Joseph Guse and J. Taylor Smith

No 5135, CESifo Working Paper Series from CESifo

Abstract: Since giving to religious organizations constitutes a substantial portion of total charitable giving, an understanding of the determinants of religious giving is a vital policy concern. Drawing on a novel congregation-level panel dataset, we examine whether religious giving is driven by preferences for racial group affinity, that is, loyalty to one's own racial group. To address endogeneity concerns, we combine a fixed effects estimation framework with an instrumental variable approach. We find robust evidence consistent with the racial group affinity motive: a decrease in the percent of whites in the county is ceteris paribus associated with a decrease in the total giving receipts collected by predominantly white congregations.

Keywords: religious giving; racial group affinity; diversity; congregations (search for similar items in EconPapers)
JEL-codes: D64 J15 L31 Z12 (search for similar items in EconPapers)
Date: 2014
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Journal Article: Racial Group Affinity and Religious Giving: Evidence from Congregation-Level Panel Data (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5135

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