Divided We Keep?: A Model for Socioeconomic Segregation’s Effect on Generosity

• In Event: 40221 - Section on Mathematical Sociology Flash Talks
  In Refereed Roundtable (90 minute): Table 5: Divided We Keep?: A Model for Socioeconomic Segregation’s Effect on Generosity

Abstract

A substantial body of literature suggests that the least well-off members of society are often the most financially generous by several metrics. The dominant explanation for this trend attributes this generosity to a “serial reciprocity” dynamic, where individuals who have received help in the past are more inclined to give, driven by the contagious nature of generosity. Using an agent-based model, I argue that the serial reciprocity model of generosity cannot fully explain low-income people’s elevated propensity to give. Instead, I propose an alternative framework: Potential donors rely on three key heuristics when deciding whether to donate, informed by the behaviors of those nearest to them, in addition to their baseline propensity to be generous. Under these conditions, the simulations show that high socioeconomic segregation produces the generosity patterns observed in empirical studies, including in conditions that mirror the segregation levels and income distribution in the United States. When societies are more integrated along socioeconomic lines, these patterns disappear, and agents collectively donate more money overall. This finding highlights how income-based segregation may undermine the overall efficiency and effectiveness of private fundraising, particularly for alleviating poverty and inequality.

Author

• Ian Rowe-Nicholls, Pennsylvania State University