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Why without pay? Intrinsic motivation in unpaid labour supply

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  • Bruna Bruno
  • Damiano Fiorillo

Abstract

Economic theory explains the supply of volunteering alternatively as an ordinary consumer good or an investment one. This paper provides a simultaneous approach considering both the objectives, by using the psychological distinction between intrinsic and extrinsic motivations, in order to reconcile conflicting results reported in the literature. According to the simultaneity approach, the paper develops a theoretical model of unpaid labour supply within an agent’s two-period utility maximization problem, taking into account the role of psychological motivation. The theoretical findings are tested with a sample selection model for Italy, by using 1997 Multipurpose Households Survey on everyday life issues of Istat. Robustness analysis and endogeneity test for intrinsic motivation are also performed. Empirical analysis rejects the hypothesis that only a consumption or investment motive could explain Italian volunteers’ behaviour, supporting the hypothesis that both motives interact in shaping regular unpaid labour supply, with a stronger impact of consumption motives. The relevant variables for frequently supplied unpaid labour are intrinsic motivation, age, household income, family responsibilities and activity sector.

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Bibliographic Info

Paper provided by D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy in its series Discussion Papers with number 3_2011.

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Date of creation: 31 Mar 2011
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Handle: RePEc:prt:dpaper:3_2011

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Keywords: Intrinsic motivation; investment and consumption motives; volunteering.;

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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. Apinunmahakul, Amornrat & Devlin, Rose Anne, 2008. "Social networks and private philanthropy," Journal of Public Economics, Elsevier, Elsevier, vol. 92(1-2), pages 309-328, February.
  3. Prouteau, Lionel & Wolff, François-Charles, 2008. "On the relational motive for volunteer work," Journal of Economic Psychology, Elsevier, Elsevier, vol. 29(3), pages 314-335, June.
  4. Prouteau, Lionel & Wolff, Francois-Charles, 2006. "Does volunteer work pay off in the labor market?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 35(6), pages 992-1013, December.
  5. Beraldo S. & Turati G., 2007. "Non-Profit Organizations, employment and the Mezzogiorno," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 3-4, pages 857-896.
  6. 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.
  7. Jeffrey Carpenter & Caitlin Knowles Myers, 2010. "Why Volunteer? Evidence on the Role of Altruism, Image, and Incentives," Middlebury College Working Paper Series, Middlebury College, Department of Economics 1023, Middlebury College, Department of Economics.
  8. Damiano Fiorillo, 2009. "Do monetary rewards crowd out intrinsic motivations of volunteers? Some empirical evidence for Italian volunteers," Discussion Papers, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy 3_2009, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  9. Francois Vaillancourt, 1994. "To Volunteer or Not: Canada, 1987," Canadian Journal of Economics, Canadian Economics Association, vol. 27(4), pages 813-26, November.
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  11. Cappellari, Lorenzo & Ghinetti, Paolo & Turati, Gilberto, 2011. "On time and money donations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 40(6), pages 853-867.
  12. 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, Elsevier, vol. 47(3), pages 321-341, April.
  13. 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.
  14. 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.
  15. Bruno, B., 2010. "Rewarding my Self. The role of Self Esteem and Self Determination in Motivation Crowding Theory," MPRA Paper 23117, University Library of Munich, Germany.
  16. Franz Hackl & Martin Halla & Gerald J. Pruckner, 2007. "Volunteering and Income - The Fallacy of the Good Samaritan?," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 60(1), pages 77-104, 02.
  17. van den Bergh, Jeroen C.J.M., 2008. "Environmental regulation of households: An empirical review of economic and psychological factors," Ecological Economics, Elsevier, Elsevier, vol. 66(4), pages 559-574, July.
  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. Damiano Fiorillo, 2009. "Volunteer Labour Supply: Micro-econometric Evidence from Italy," AIEL Series in Labour Economics, AIEL - Associazione Italiana Economisti del Lavoro, in: Marco Musella & Sergio Destefanis (ed.), Paid and Unpaid Labour in the Social Economy. An International Perspective, edition 1, chapter 10, pages 165-181 AIEL - Associazione Italiana Economisti del Lavoro.
  20. James Banks & Sarah Tanner, 1998. "Modelling voluntary labour supply," IFS Working Papers, Institute for Fiscal Studies W98/17, Institute for Fiscal Studies.
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Cited by:
  1. Bruna Bruno & Damiano Fiorillo, 2014. "Voluntary work and wages," EERI Research Paper Series EERI RP 2014/05, Economics and Econometrics Research Institute (EERI), Brussels.
  2. Damiano Fiorillo, 2010. "Volunteer work and domain satisfactions: Evidence from Italy," Discussion Papers, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy 6_2010, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.

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