The impact of birthplace diversity on prosociality: Ingroups versus outgroups

Abstract

How does immigration shape prosociality? This study investigates the impact of birthplace diversity on households’ private provision of financial support to different social groups in China. Linking nationally representative surveys with prefectural socio-economic data and census information, we employ a shift-share instrumental variable approach alongside fixed effects to explore this relationship. Exposure to increased birthplace diversity leads to more households providing financial assistance to friends and strangers, but not to relatives. The favorable impacts stem primarily from within-group diversity and fractionalization, rather than from between-group diversity and polarization. Economic interdependence and broader inclusiveness, as opposed to social trust or outgroup threat, likely drive these effects. The observed effect is more pronounced among households with higher educational attainment, superior economic status, and in cities receiving fewer distant immigrants. Distinguishing dimensions of diversity and their contexts is crucial for understanding immigration’s social implications.