TY  - RPRT
        AU  - Wojtaszek, Carl J.
AU  - Kofoed, Michael S.
        TI  - Sensitivity of Charitable Giving to Realized Income Changes: Evidence from Military Bonuses and the Combined Federal Campaign
        PY  - 2021/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14955
        UR  - https://www.iza.org/publications/dp14955
        AB  - The permanent income hypothesis states that agents perfectly smooth consumption given a large, anticipated shock to income. Testing these implications is difficult given the endogenous nature of income and payment timing. We leverage exogenous variation in military bonus size and timing matched with donations from a large workplace charitable drive where soldiers contribute via payroll deductions during a fixed open enrollment period. Our findings suggest that soldiers are 5 to 10 percent more likely to contribute if they receive their bonus during the open enrollment period. We show that soldiers smooth donations more with age and increased bonus experience.
        KW  - charitable giving
KW  - altruism
KW  - income shocks
KW  - permanent income hypothesis
        ER  -