Inequality and giving

Nicolas Duquette and Enda Hargaden

Journal of Economic Behavior & Organization, 2021, vol. 186, issue C, 189-200

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.

Keywords: Inequality; Charitable giving; Lab experiments (search for similar items in EconPapers)
JEL-codes: C91 D31 D64 H23 L31 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:186:y:2021:i:c:p:189-200

DOI: 10.1016/j.jebo.2021.03.030

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