Having Less But Giving More: Evidence From China

The impact of income placement on the percentage of income given has been widely studied in developed countries, but little attention has been given to the issue in developing countries. We investigate the variance in the giving/income share among different income groups by employing China Family Panel Studies data from 2010 to 2020 and find that low-income households, especially those whose income meets basic living needs, donate a greater fraction of income to charity than middle- and high-income households do. Both religious affiliation and receiving public assistance have stronger positive effects on the percentage of income given among low-income households than among those in middle- and high-income groups. Our findings provide evidence on which income group gives higher ratio of income to charity in a developing country. Based on our findings, providing assistance for low-income households by religions and public transfers may be a reasonable option for sustainable development of charitable causes.