The Korean Economic Review
Politics, Religion, and Tax Incentives for Charitable Giving in South Korea
YoungRok Kim (Kobe University)Year 2021Vol. 37No. 1
AbstractThis study explores the effects of tax incentives for charitable contributions concerning taxpayers’ socioeconomic characteristics, religion, and political preference. Using South Korean household-level panel data, we regard people from a wide range of demographics and religious and political groups as our research subject. We obtain the following results:(1) Controlling for religious and political preferences enhances the estimation result. (2)Taxpayers practicing Protestantism do not significantly respond to tax incentives, although they are the most philanthropic group of all religious groups studied. (3) Political preference significantly affects donation behavior, wherein conservatives react less significantly to tax incentives than progressives. Our results provide evidence that giving intention is not only practice-driven but also ideology-driven.