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Volunteering and the State

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  • Hackl, Franz

    ()
    (University of Linz)

  • Halla, Martin

    ()
    (University of Linz)

  • Pruckner, Gerald J.

    ()
    (University of Linz)

Abstract

This paper explores the capability of the state to affect the individual's decision to work for free. For this purpose we combine individual-level data from the European and World Values Survey with macroeconomic and political variables for OECD member countries. Empirically we identify three channels for crowding out of voluntary labor. Firstly, an increase in public social expenditure decreases the probability that the individual will volunteer (fiscal crowding out). Secondly, a political consensus between individuals and the government also induces volunteers to reduce their unsalaried activities (consensual crowding out). And finally, the more a government supports democratization, the lower is the individual's engagement (participatory crowding out). Religiosity and a more unequal income distribution in a country increase individuals’ willingness to volunteer.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4016.

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Length: 36 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4016

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Keywords: political consensus; voluntary labor supply; public social expenditure; private provision of public goods; volunteering; democratization;

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References

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  1. Stephan Meier & Alois Stutzer, . "Is Volunteering Rewarding in Itself?," IEW - Working Papers 180, Institute for Empirical Research in Economics - University of Zurich.
  2. Franz Hackl & Martin Halla & Gerald J Pruckner, 2004. "The fallacy of the Good Samaritan: Volunteering as a weird way of making money," Economics working papers, Department of Economics, Johannes Kepler University Linz, Austria 2004-15, Department of Economics, Johannes Kepler University Linz, Austria.
  3. Naomi E. Feldman, 2010. "Time Is Money: Choosing between Charitable Activities," American Economic Journal: Economic Policy, American Economic Association, American Economic Association, vol. 2(1), pages 103-30, February.
  4. Frey, Bruno S & Jegen, Reto, 2001. " Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 15(5), pages 589-611, December.
  5. Richard STEINBERG, 1991. "Does Government Spending Crowd Out Donations?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 62(4), pages 591-612, October.
  6. Riber, D.C. & Wilhelm, M.O., 1996. "Altruistic and Joy-of-Giving Motivations in Charitable Behavior," Papers, Pennsylvania State - Department of Economics 1-96-4, Pennsylvania State - Department of Economics.
  7. Thomas Garrett & Russell Rhine, 2010. "Government growth and private contributions to charity," Public Choice, Springer, Springer, vol. 143(1), pages 103-120, April.
  8. Chan, Kenneth S. & Godby, Rob & Mestelman, Stuart & Andrew Muller, R., 2002. "Crowding-out voluntary contributions to public goods," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 48(3), pages 305-317, July.
  9. Freeman, Richard Barry, 1997. "Working for Nothing: The Supply of Volunteer Labor," Scholarly Articles 4632239, Harvard University Department of Economics.
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  14. Crumpler, Heidi & Grossman, Philip J., 2008. "An experimental test of warm glow giving," Journal of Public Economics, Elsevier, Elsevier, vol. 92(5-6), pages 1011-1021, June.
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  18. Kingma, Bruce Robert, 1989. "An Accurate Measurement of the Crowd-Out Effect, Income Effect, and Price Effect for Charitable Contributions," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 97(5), pages 1197-1207, October.
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  20. Khanna, Jyoti & Sandler, Todd, 2000. "Partners in giving:: The crowding-in effects of UK government grants," European Economic Review, Elsevier, Elsevier, vol. 44(8), pages 1543-1556, August.
  21. Walter O. Simmons & Rosemarie Emanuele, 2004. "Does Government Spending Crowd Out Donations of Time and Money?," Public Finance Review, , , vol. 32(5), pages 498-511, September.
  22. Roberts, Russell D, 1984. "A Positive Model of Private Charity and Public Transfers," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 92(1), pages 136-48, February.
  23. Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, StataCorp LP, vol. 4(2), pages 154-167, June.
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  26. Kathleen M. Day & Rose Anne Devlin, 1996. "Volunteerism and Crowding Out: Canadian Econometric Evidence," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 29(1), pages 37-53, February.
  27. Menchik, Paul L. & Weisbrod, Burton A., 1987. "Volunteer labor supply," Journal of Public Economics, Elsevier, Elsevier, vol. 32(2), pages 159-183, March.
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Citations

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Cited by:
  1. Garofalo, Maria Rosaria, 2011. "Il volontariato può sostenere lo sviluppo? Riflessioni metodologiche per la costruzione di un frame work teorico
    [Can the voluntary sector sustain the development path of an economy? Suggestions f
    ," MPRA Paper 40008, University Library of Munich, Germany.
  2. Bartels, Koen & Cozzi, Guido & Mantovan, Noemi, 2011. "Public Spending and Volunteering: "The Big Society", Crowding Out, and Volunteering Capital," MPRA Paper 29730, University Library of Munich, Germany.

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