People with less money are more generous

15 May 2021Updated: 4 hours ago | 52 people are reading

People with less money are more generous

© Shutterstock Wealthy people give relatively less

People with less give more. That is the result of a study by Queen Mary University in London.

Researchers created an economic game in which people were divided into two categories: low status and high status (relating to social, economic and educational achievements). Subsequently, the participants were instructed to deposit an arbitrary amount in a pot that would later be distributed fairly among all participants. It turned out that people with the label 'low status' deposited the most.

In the experiment, participants had two types of fictitious money at their disposal: money they had earned and money that they had received by chance. The 'high status' people turned out to be less inclined to give away money they had earned themselves, while it didn't matter to the 'low status' people.

The results confirm the common idea that poor people are often generous. Although they donate less often to charities and other individuals, they give a greater share of their income when they do donate.

The head of research Magda Osman said the reason "low status" people give more is likely to be trying to raise their status through cooperative efforts.

In the book 'Who Really Cares: The Surprising Truth About Compassionate Conservatism', author Arthur Brooks writes that low-income people give away 4 to 5 percent of their income on average, while wealthy people give 3 to 4 percent on average to give away.

Source: Queen Mary University