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Are volunteers substitute for paid labor in nonprofit organizations?

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  • Simmons, Walter O.
  • Emanuele, Rosemarie
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    Abstract

    This study asks whether nonprofit organizations that use volunteer labor are seen as substituting volunteers for paid labor. The study contributes to the literature on the demand for volunteer labor by utilizing current data on giving and volunteering and explicitly accounting for a state's minimum wage among its explanatory variables. We find a statistically significant positive relationship between the prevailing minimum wage in a state and the amount of volunteer labor offered by donors in each state--implying that organizations that use volunteers view them as substitutes to low-paid workers.

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    File URL: http://www.sciencedirect.com/science/article/B6V7T-4WWG353-1/2/7444499f70cfcd405c637dec53aa15f3
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economics and Business.

    Volume (Year): 62 (2010)
    Issue (Month): 1 (January)
    Pages: 65-77

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    Handle: RePEc:eee:jebusi:v:62:y:2010:i:1:p:65-77

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    Web page: http://www.elsevier.com/locate/jeconbus

    Related research

    Keywords: Nonprofit organizations Volunteer labor;

    References

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    1. Kathleen M. Day & Rose Anne Devlin, 1996. "Volunteerism and Crowding Out: Canadian Econometric Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 37-53, February.
    2. Weisbrod, Burton A, 1983. "Nonprofit and Proprietary Sector Behavior: Wage Differentials among Lawyers," Journal of Labor Economics, University of Chicago Press, vol. 1(3), pages 246-63, July.
    3. Lewis M. Segal & Burton A. Weisbrod, 2002. "Volunteer labor sorting across industries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(3), pages 427-447.
    4. Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, vol. 19(1), pages 131-138, October.
    5. Wei-Chiao Huang & Subhash C. Ray, 1986. "Labor Supply, Voluntary Work, and Charitable Contributions in a Model of Utility Maximization," Eastern Economic Journal, Eastern Economic Association, vol. 12(3), pages 257-263, Jul-Sep.
    6. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    7. Roberts, Russell D, 1984. "A Positive Model of Private Charity and Public Transfers," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 136-48, February.
    8. Duncan, Brian, 1999. "Modeling charitable contributions of time and money," Journal of Public Economics, Elsevier, vol. 72(2), pages 213-242, May.
    9. Preston, Anne E, 1989. "The Nonprofit Worker in a For-Profit World," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 438-63, October.
    10. Richard B. Freeman, 1996. "Working for Nothing: The Supply of Volunteer Labor," NBER Working Papers 5435, National Bureau of Economic Research, Inc.
    11. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
    12. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
    13. Brown, Eleanor & Lankford, Hamilton, 1992. "Gifts of money and gifts of time estimating the effects of tax prices and available time," Journal of Public Economics, Elsevier, vol. 47(3), pages 321-341, April.
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