Brother, Can You Spare a Dime: Peer Effects in Charitable Solicitation
While the effects of
peers on charitable giving have been of considerable interest to social
scientists, there is little evidence empirical evidence on the magnitude of
these effects. A correlation between giving or volunteering by one’s peers and
one’s own giving can be driven by self-selection into groups, common shocks
that inspire both the solicitor to ask and the individual to give, or social
influence. Using data from a university, this paper analyzes whether alumni are
more likely to give and give larger amounts when they are solicited by someone
with whom they have social ties. Freshman year roommate assignments and the
structure of the university’s giving campaigns are used to overcome problems of
selection and common shocks. Social ties play a strong causal role in the
decision to donate and the average gift size. Additionally, a solicitor’s
request is much more effective if he or she shares characteristics, such as
race, with the alumnus being solicited. |