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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Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number
2009-01.
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.
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Find related papers by JEL classification: 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 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
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