Advanced Search
MyIDEAS: Login to save this paper or follow this series

The fallacy of the Good Samaritan: Volunteering as a weird way of making money

Contents:

Author Info

Abstract

This paper explores individual motives for volunteering: The analysis is based on the interpretation of volunteering as a consumption good (consumption model) or as a mean to increase individual’s own human capital (investment model). We present an econometric framework taking into account self selection into volunteering and simultaneity between the volunteering decision and the determination of income in order to test these two models and to identify the underlying motives. We find strong statistical evidence for the investment model with a highly robust and significant impact of volunteering on the wage rate. On average the wage premium as the difference in the wage rate between one person volunteering and not volunteering amounts up to 15.7 percent. Within the framework of the investment model it turns out that the number of volunteering hours plays a major role in explaining this wage premium. This supports the idea of volunteering as a mean to accumulate human capital and signalling willingness to perform. As far as the consumption model is concerned we find no convincing statistical evidence for its validity. The strong evidence for the investment model requires the consideration of voluntary activities in the estimation of wage equations. Moreover, we conclude that the existence of the wage premium is a decisive factor for people to volunteer or not and therefore reflects an important argument in the recruitment process of volunteers for several organisations.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ.jku.at/papers/2004/wp0415.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2004-15.

as in new window
Length:
Date of creation: Dec 2004
Date of revision:
Handle: RePEc:jku:econwp:2004_15

Contact details of provider:
Fax: +43 732-2468-8238
Web page: http://www.econ.jku.at/
More information through EDIRC

Related research

Keywords: volunteering; voluntary labour supply; human capital accumulation; wage premium; altruism.;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Bruno S. Frey & Lorenz Goette, . "Does Pay Motivate Volunteers?," IEW - Working Papers 007, Institute for Empirical Research in Economics - University of Zurich.
  2. Pak-Wai Liu & Junsen Zhang, 1999. "Assortative mating versus the cross-productivity effect," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 6(8), pages 523-525.
  3. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, StataCorp LP, vol. 2(4), pages 358-377, November.
  4. Lorenzo Cappellari & Gilberto Turati, 2004. "Volunteer Labour Supply: the role of workers' motivations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(4), pages 619-643, December.
  5. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," Boston College Working Papers in Economics, Boston College Department of Economics 545, Boston College Department of Economics, revised 14 Feb 2003.
  6. Frey, Bruno S, 1997. "A Constitution for Knaves Crowds Out Civic Virtues," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 107(443), pages 1043-53, July.
  7. Unger, Lynette S., 1991. "Altruism as a motivation to volunteer," Journal of Economic Psychology, Elsevier, Elsevier, vol. 12(1), pages 71-100, March.
  8. 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.
  9. Cugno, Franco & Ferrero, Mario, 2004. "Competition among volunteers," European Journal of Political Economy, Elsevier, vol. 20(3), pages 637-654, September.
  10. Day, K.M. & Devlin, R.A., 1993. "The Payoff to Work without Pay: Volunteer Work as an Investment in Human Capital," Working Papers, University of Ottawa, Department of Economics 9310e, University of Ottawa, Department of Economics.
  11. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 100(401), pages 464-77, June.
  12. Meier, Stephan & Stutzer, Alois, 2004. "Is Volunteering Rewarding in Itself?," IZA Discussion Papers 1045, Institute for the Study of Labor (IZA).
  13. Stark,Oded, 1999. "Altruism and Beyond," Cambridge Books, Cambridge University Press, number 9780521663731, 9.
  14. John Gibson, 1999. "Correlation versus causation and the apparent external benefits of education," New Zealand Economic Papers, Taylor & Francis Journals, Taylor & Francis Journals, vol. 33(1), pages 51-69.
  15. Freeman, Richard Barry, 1997. "Working for Nothing: The Supply of Volunteer Labor," Scholarly Articles 4632239, Harvard University Department of Economics.
  16. Saloner, Garth, 1985. "Old Boy Networks as Screening Mechanisms," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 3(3), pages 255-67, July.
  17. Newey, Whitney K., 1987. "Efficient estimation of limited dependent variable models with endogenous explanatory variables," Journal of Econometrics, Elsevier, Elsevier, vol. 36(3), pages 231-250, November.
  18. Paul S. Carlin, 2001. "Evidence on the Volunteer Labor Supply of Married Women," Southern Economic Journal, Southern Economic Association, vol. 67(4), pages 801-824, April.
  19. Katz, Eliakim & Rosenberg, Jacob, 2005. "An economic interpretation of institutional volunteering," European Journal of Political Economy, Elsevier, vol. 21(2), pages 429-443, June.
  20. Menchik, Paul L. & Weisbrod, Burton A., 1987. "Volunteer labor supply," Journal of Public Economics, Elsevier, vol. 32(2), pages 159-183, March.
  21. Schady, Norbert R., 2001. "Who participates : the supply of volunteer labor and the distribution of government programs in rural Peru," Policy Research Working Paper Series 2671, The World Bank.
  22. 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.
  23. Schram, Vicki R & Dunsing, Marilyn M, 1981. " Influences on Married Women's Volunteer Work Participation," Journal of Consumer Research, University of Chicago Press, University of Chicago Press, vol. 7(4), pages 372-79, March.
  24. Amemiya, Takeshi, 1978. "The Estimation of a Simultaneous Equation Generalized Probit Model," Econometrica, Econometric Society, Econometric Society, vol. 46(5), pages 1193-1205, September.
  25. Omar M. G. Keshk, 2003. "CDSIMEQ: A program to implement two-stage probit least squares," Stata Journal, StataCorp LP, StataCorp LP, vol. 3(2), pages 157-167, June.
  26. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, Econometric Society, vol. 54(3), pages 679-85, May.
  27. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, Elsevier, vol. 39(3), pages 347-366, November.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Paola Zappa & Emma Zavarrone, 2010. "Social interaction and volunteer satisfaction: an exploratory study in primary healthcare," International Review of Economics, Springer, Springer, vol. 57(2), pages 215-231, June.
  2. Sherman, Arie & Shavit, Tal, 2013. "The immaterial sustenance of work and leisure: A new look at the work–leisure model," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 46(C), pages 10-16.
  3. Bruno, Bruna & Fiorillo, Damiano, 2013. "Voluntary work and labour income," MPRA Paper 43995, University Library of Munich, Germany.
  4. Bruna, Bruno & Damiano, Fiorillo, 2009. "Why without Pay? The Intrinsic Motivation between Investment and Consumption in Unpaid Labour Supply," CELPE Discussion Papers 111, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  5. Hackl, Franz & Halla, Martin & Pruckner, Gerald J., 2009. "Volunteering and the State," IZA Discussion Papers 4016, Institute for the Study of Labor (IZA).
  6. Bruna Bruno & Damiano Fiorillo, 2014. "Voluntary work and wages," EERI Research Paper Series EERI RP 2014/05, Economics and Econometrics Research Institute (EERI), Brussels.
  7. Damiano Fiorillo, 2009. "Do monetary rewards crowd out intrinsic motivations of volunteers? Some empirical evidence for Italian volunteers," Discussion Papers 3_2009, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  8. Max Albert, 2008. "Product Quality in a Simple OLG Model of Scientific Competition," MAGKS Papers on Economics, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) 200804, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  9. Damiano Fiorillo, 2010. "Volunteer work and domain satisfactions: Evidence from Italy," Discussion Papers 6_2010, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  10. Benno Torgler & María A.García-Valiñas & Alison Macintyre, 2008. "Environmental Participation and Environmental Motivation," CREMA Working Paper Series 2008-19, Center for Research in Economics, Management and the Arts (CREMA), revised Jan 2009.
  11. Fiorillo, Damiano, 2007. "Do monetary rewards undermine intrinsic motivations of volunteers? Some empirical evidence for Italian volunteers," MPRA Paper 7783, University Library of Munich, Germany.
  12. Astrid Haider & Ulrike Schneider, 2010. "The Influence Of Volunteers, Donations And Public Subsidies On The Wage Level Of Nonprofit Workers: Evidence From Austrian Matched Data," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 81(1), pages 1-20, 03.
  13. Alexander Kroll & Dominik Vogel, 2013. "Prosocial Attitudes in the Public and Private Sector: Exploring Behavioral Effects and Variation across Time," SOEPpapers on Multidisciplinary Panel Data Research 578, DIW Berlin, The German Socio-Economic Panel (SOEP).
  14. Bruno, Bruna & Fiorillo, Damiano, 2012. "Why without pay? Intrinsic motivation in the unpaid labour supply," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 659-669.
  15. Bruna Bruno & Damiano Fiorillo, 2011. "Why without pay? Intrinsic motivation in unpaid labour supply," Discussion Papers 3_2011, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:jku:econwp:2004_15. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ren� B�heim).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.