Arts sponsorship and the state of the city

Abstract

This paper explores the correlation between metropolitan social and economic conditions and corporate arts support in the United States. It is hypothesized that the transition from a manufacturing sector economy to an advanced service sector economy is an important local factor for the increase in corporate arts support. By panel analysis, in eleven metropolitan areas between 1977 and 1991 changes in corporate arts support have been correlated with changes in social and economic conditions, i.e., service sector and manufacturing sector employment, service sector and manufacturing sector income, population's educational attainment, and the degree of dominance by the leading local arts supporting industry. Corporate arts support is higher in metropolitan areas where the population is better educated (β=+0.60), the local service sector generates more income (β=+0.37) and the local manufacturing sector generates less income (β=−0.22). Corporations from the manufacturing sector are mostly indifferent towards arts support. In contrast, corporations from the service sector are supportive of the local arts but they also respond swiftly to a loss in their earnings by discontinuing their arts support.