Volunteering and the State
AbstractThis 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 InfoPaper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2009-01.
Length: 35 pages
Date of creation: Feb 2009
Date of revision:
Volunteering; voluntary labor supply; private provision of public goods; public social expenditure; political consensus; democratization;
Other versions of this item:
- Hackl, Franz & Halla, Martin & Pruckner, Gerald J., 2009. "Volunteering and the State," IZA Discussion Papers 4016, Institute for the Study of Labor (IZA).
- Franz Hackl & Martin Halla & Gerald J. Pruckner, 2009. "Volunteering and the State," NRN working papers 2009-01, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- D30 - Microeconomics - - Distribution - - - General
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
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