Paternalism and Ethnicity in Giving

Abstract

This paper investigates paternalism and ethnicity in giving. In this experiment donors choose to donate to one of three recipient types, varying by ethnicity. In one treatment, donors can impose a costly restriction on their donation. I find a higher proportion of donors choose to donate to a commonly negatively stereotyped recipient (Indigenous Australians) when they are able to act paternalistically. Even when paternalism is costly, almost 60 per cent chose to restrict their donation. Paternalism is also found to be related to recipient type. The results indicate that to increase donations, charities may need to reduce donors’ perceptions of misuse.