Objective: Given the detrimental consequences of income inequality and the importance of charitable giving in society, the relationship between income inequality and charitable giving has attracted much scholarly attention, but less is known about why and how income inequality is associated with charitable giving. This study intends to explore the role of government social spending in the relationship between income inequality and charitable giving. Method: Building upon previous theoretical arguments and empirical studies, I argue that income inequality is negatively related to government social spending, and government social spending is negatively related to charitable giving. Using the U.S. county-level panel data (2011)(2012)(2013)(2014)(2015)(2016)(2017), this study runs a series of fixed-effects models. Results: It finds there is no significant relationship between income inequality and government social spending as well as between government social spending and charitable giving. However, income inequality has a robustly and significantly negative relationship with charitable giving. Conclusion: Government social spending does not play a mediating role in the relationship between income inequality and charitable giving, but income inequality actually has a pernicious effect on individual philanthropy.
KEYWORDS charitable giving, government social spending, income inequality, the United StatesThe past four decades have witnessed a rising income inequality in many countries (Alvaredo et al. 2018). Previous research has demonstrated the pernicious consequences of higher income inequality: more political conflicts, higher rates of crime, less social cohesion, to name just a few (Solt 2008;Thorbecke and Charumilind 2002;Wilkinson and Pickett 2011). Meanwhile, charitable giving contributes substantially to our society through increasing donors' well-being, satisfying beneficiaries' needs, and maintaining the 728