Does Generosity Beget Generosity? Alumni Giving and Undergraduate Financial Aid
Jonathan Meer and
Harvey Rosen ()
No 17861, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
We investigate how undergraduates' financial aid packages affect their subsequent donative behavior as alumni. The empirical work is based upon micro data on alumni giving at an anonymous research university. We focus on three types of financial aid, scholarships, loans, and campus jobs. A novel aspect of our modeling strategy is that, consistent with the view of some professional fundraisers, we allow the receipt of a given form of aid per se to affect alumni giving. At the same time, our model allows the amount of the support to affect giving behavior nonlinearly. Our main findings are: 1) Individuals who took out student loans are less likely to make a gift, other things being the same. We conjecture that this phenomenon is caused by an "annoyance effect" -- alumni resent the fact that they are burdened with loans. 2) Scholarship aid reduces the size of a gift, but has little effect on the probability of donating. The negative effect of receiving a scholarship on donations decreases in absolute value with the size of the scholarship. We do not find any evidence that scholarship recipients give less because they have relatively low incomes post graduation. 3) Aid in the form of campus jobs does not have a strong effect on donative behavior.
JEL-codes: I22 I23 (search for similar items in EconPapers)
Date: 2012-02
New Economics Papers: this item is included in nep-lab and nep-soc
Note: ED PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)
Published as Meer, Jonathan & Rosen, Harvey S., 2012. "Does generosity beget generosity? Alumni giving and undergraduate financial aid," Economics of Education Review, Elsevier, vol. 31(6), pages 890-907.
Downloads: (external link)
http://www.nber.org/papers/w17861.pdf (application/pdf)
Related works:
Journal Article: Does generosity beget generosity? Alumni giving and undergraduate financial aid (2012) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:17861
Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w17861
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().