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Household Charity in Pakistan: Magnitude, Determinants and Its Importance for the Well-being of Society

Author

Listed:
  • Muhammad Jehangir Khan

    (Pakistan Institute of Development Economics, Islamabad)

  • G. M. Arif

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

This study examines the magnitude, patterns and determinants of household charity in Pakistan by using the 2010 Pakistan Panel Household Survey (PPHS). Previous studies have limited information on social and economic conditions of households; hence, little work has been carried out on the patterns and determinants of charitable giving, due to data limitations. This study estimated the size of individual giving as Rs 142 billion; adjusting for the value of time volunteered. Donation is increased with expenditure quintiles, whereas households belong to the poorest quintile are also very generous in participating in charitable giving. Double hurdle model is used to examine the determinants of donations. Results suggest that those households with high expenditure, older age, more children and more educated members give more to charity. Households that own the dwelling unit donate more to charity. The bigger the size of the housing unit (number of rooms), the more a household donates to charity. The importance of household giving has also been viewed from the perspective of needy and poor households, which receive and accept the donations from other households/individuals. It has been shown that 75 percent of the sampled households helped others in 2010 through their fitrana money. It is assumed that the remaining 25 percent of households which have not given fitrana in 2010 were the needy and poor households eligible for receiving donations. If all donations made in 2010 by households were distributed equally among these needy households, the average annual receipts from private sources (households) turned out to be approximately Rs 14300 per household.

Suggested Citation

  • Muhammad Jehangir Khan & G. M. Arif, 2016. "Household Charity in Pakistan: Magnitude, Determinants and Its Importance for the Well-being of Society," PIDE-Working Papers 2016:141, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2016:141
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    References listed on IDEAS

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    More about this item

    Keywords

    Charitable Giving; Well-being of Society; Social Justice;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D6 - Microeconomics - - Welfare Economics
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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