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Inequality and giving

Author

Listed:
  • Duquette, Nicolas J.
  • Hargaden, Enda P.
Abstract
In a laboratory experiment, we incentivize participants to make donations to a real-world charity. By randomizing the income distribution, we identify a causal effect of inequality on giving behavior. On both the intensive and extensive margins, donations fall when inequality is higher. Our results conflict with theories that predict greater inequality increases charitable giving, but are consistent with other empirical evidence that charitable giving is lower when inequality increases. We present a model where the income distribution directly affects the marginal utility of charitable giving, making a negative inequality-giving relationship possible.

Suggested Citation

  • Duquette, Nicolas J. & Hargaden, Enda P., 2021. "Inequality and giving," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 189-200.
    • Handle: RePEc:eee:jeborg:v:186:y:2021:i:c:p:189-200
    DOI: 10.1016/j.jebo.2021.03.030
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    References listed on IDEAS

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    More about this item

    Keywords

    Inequality; Charitable giving; Lab experiments;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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