Chao guo and Laura R. Peck
This study assesses the extent to which welfare recipients engage in giving money and time to charitable causes. Using the 2003 Center on Philanthropy Panel Study data, this study examines the effects of public assistance—holding constant earned income and demographic traits—on two major types of charitable activities: charitable giving and volunteering. Using a Tobit specification, as appropriate for this type of data, the authors use a creative differencing strategy in an attempt to overcome sticky issues of selection bias. Evidence is found that public assistance receipt tends to suppress monetary donations but may increase volunteer time.