What is it about?
This study investigates the causal impact of peer influence on charitable donations among college students, leveraging the random assignment of roommates to address self-selection bias. The researchers find that exposure to peers with prosocial behaviors, measured by their high school volunteering history, significantly increases an individual's likelihood and amount of donations in college. The study also explores the mechanisms behind these peer effects, suggesting that social pressure plays a key role, particularly for individuals with lower donation levels, those who prefer face-to-face interactions, and those with lower self-confidence.
Featured Image
Photo by Daniel Marchal on Unsplash
Why is it important?
Understanding the determinants of philanthropic behavior is crucial for promoting charitable giving, which benefits society but involves private costs. This study contributes to the literature by providing causal evidence of peer effects in donations, addressing the challenges of self-selection and reflection bias through the random assignment of roommates. It also highlights the importance of social pressure as a mechanism driving peer influence, offering insights into how peer groups can be leveraged to encourage prosocial behaviors. Additionally, the study provides valuable evidence from China, a context with relatively low levels of charitable giving, expanding the understanding of peer effects in developing countries.
Perspectives
The findings underscore the importance of fostering prosocial behaviors early in life, as high school volunteering history significantly influences college students' philanthropic actions. The study also suggests that promoting face-to-face interactions and creating positive social environments can enhance peer influence, particularly for individuals with lower confidence levels. These insights have practical implications for designing interventions to increase charitable contributions, both in educational settings and broader community contexts. The authors call for further research to explore additional mechanisms, such as social learning, and to examine how peer effects evolve as individuals transition from college to the workforce.
Prof. Maoliang Ye
Southern University of Science and Technology
Read the Original
This page is a summary of: Peer effects in donations: Evidence from random assignment of college roommates, Journal of Economic Behavior & Organization, April 2024, Elsevier,
DOI: 10.1016/j.jebo.2024.02.036.
You can read the full text:
Contributors
The following have contributed to this page
