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The Diversity Imperative: The Effects of Local Economic Structure and Social Capital on Local Philanthropy

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Abstract

Philanthropic endeavors are a form of institutionalized collective action that enhances a community’s capacity to address community needs and interests. Despite studies investigating the complex relationships between local economies, social capital, and local philanthropy, much remains unknown concerning the interaction between diverse local economic structures, social capital, and local philanthropy. Therefore, we explore whether local economies and social capital affect a community’s capacity to mobilize collective resources for two distinct forms of local philanthropy: elite and social welfare-oriented. Using a quantitative analysis, we empirically examine these relationships using a dataset covering three specified years spanning 3,036 US counties. Findings suggest that the diversity of local economic structures play a moderating role in facilitating the effect of social capital on local philanthropic activities aimed at satisfying local community demands and interests. The results illustrate important policy implications concerning the diversification of economic resources for local policymakers and community leaders.

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Notes

  1. The local economic diversity index created in this paper ranges from 0 to 1. Within the range, 00-.3 is the least diverse while .81-.85 is the most diverse. The local economic diversity index is created and used as independent and moderating variables in this study.

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  1. Department of Sociology, University of Houston, Houston, TX, USA

    Hyunseok Hwang

  2. Ethnic, Gender, and Transborder Studies/Sociology, Pima Community College, Tucson, AZ, USA

    Tiffany Amorette Young

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Hwang, H., Young, T.A. The Diversity Imperative: The Effects of Local Economic Structure and Social Capital on Local Philanthropy. Voluntas 33, 571–586 (2022). https://doi.org/10.1007/s11266-021-00365-3

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