A 10 percentage point increase in ethnic diversity reduces donations by 14%, and a 10 percentage point increase in religious diversity reduces donations by 10%. The ethnic diversity effect is driven by a within-group disposition among non-minorities, and is most evident in high income, but low education areas. The religious diversity effect is driven by a within-group disposition among Catholics, and is concentrated in high income and high education areas.
This effect is mainly driven by non-minorities, who contribute $9 less for each percentage point their group share drops, and Blacks, who contribute $39 less. The average effect of ethnic diversity on donations occurs most strongly in high income, and in low education neighborhoods.
One things I have wondered about is the recipient of charity. Do non-diverse areas focus on people that are like them? Would diverse areas focus on people that are diverse? This seems to be a strong argument that cuts against the state’s role in redistribution. Perhaps in NYC, there is enough diverse well-to-do people to give charity to diverse people in needs. But what about in a small town where everyone is–for example–White Protestant. Would Jews in need receive help? What about Hispanics? You get my drift. Anyway, interesting food for thought.