DP15535 Altruism born of suffering? The impact of an adverse health shock on pro-social behaviour

Author(s): Nicole Black, Elaine De Gruyter, Dennis Petrie, Sarah Smith
Publication Date: December 2020
Keyword(s):
JEL(s): D64, H41, I12
Programme Areas: Public Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=15535

'Altruism born of suffering' (ABS) predicts that, following an adverse life event such as a health shock, individuals may become motivated to act pro-socially. However, this has not yet been examined systematically. Using data from the United States Panel Study of Income Dynamics, we find that a health shock does not lead to a general increase in pro-social behaviour. Instead, ABS is akin to a specific shock that affects giving to health charities, with an increase in the probability of giving and amounts donated to health charities coming at the expense of other non-religious charities.