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Time vs. Money – The Supply of Voluntary Labor and Charitable Donations across Europe

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  • Thomas K. Bauer
  • Julia Bredtmann

    ()

  • Christoph M. Schmidt

Abstract

Volunteering plays a prominent role in the charitable provision of goods and services, yet we know relatively little about why individuals spend time and money to the charity. Assuming that volunteering is a consumption good, we analyze the determinants of individuals’ charitable cash donations and volunteer labor as well as the interdependence between both goods. Using data from the European Social Survey, we find a positive relationship between time and money contributions on the individual as well as on the country level. The hypothesis that time and money donations are gross complements, however, is not supported by our analysis, as we find evidence that individuals substitute time donations by money donations as the price of time raises. Analyzing philanthropic behavior on a disaggregated level reveals large differences in the determinants and the relationship of time and money donations – both across different types of voluntary organizations and across different welfare regimes.

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Bibliographic Info

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0349.

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Length: 31 pages
Date of creation: Jul 2012
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Handle: RePEc:rwi:repape:0349

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Keywords: Private philanthropy; charitable contribution; voluntary organizations;

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  1. Richard B. Freeman, 1996. "Working for Nothing: The Supply of Volunteer Labor," NBER Working Papers 5435, National Bureau of Economic Research, Inc.
  2. Anke Plagnol & Felicia Huppert, 2010. "Happy to Help? Exploring the Factors Associated with Variations in Rates of Volunteering Across Europe," Social Indicators Research, Springer, vol. 97(2), pages 157-176, June.
  3. Roland Bénabou & Jean Tirole, 2005. "Incentives and Prosocial Behavior," NBER Working Papers 11535, National Bureau of Economic Research, Inc.
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  5. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
  6. Clotfelter, Charles T., 1985. "Federal Tax Policy and Charitable Giving," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110486, янваÑ.
  7. Menchik, Paul L. & Weisbrod, Burton A., 1987. "Volunteer labor supply," Journal of Public Economics, Elsevier, vol. 32(2), pages 159-183, March.
  8. Parboteeah, K. Praveen & Cullen, John B. & Lim, Lrong, 2004. "Formal volunteering: a cross-national test," Journal of World Business, Elsevier, vol. 39(4), pages 431-441, November.
  9. 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.
  10. Ellingsen, Tore & Johannesson, Magnus, 2006. "Time is not money," Working Paper Series in Economics and Finance 663, Stockholm School of Economics.
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  12. Cugno, Franco & Ferrero, Mario, 2004. "Competition among volunteers," European Journal of Political Economy, Elsevier, vol. 20(3), pages 637-654, September.
  13. Kirchgässner, Gebhard, 2010. "On minimal morals," European Journal of Political Economy, Elsevier, vol. 26(3), pages 330-339, September.
  14. Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, vol. 19(1), pages 131-138, October.
  15. Ziemek, Susanne, 2006. "Economic analysis of volunteers' motivations--A cross-country study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(3), pages 532-555, June.
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  17. Charles T. Clotfelter, 1985. "Federal Tax Policy and Charitable Giving," NBER Books, National Bureau of Economic Research, Inc, number clot85-1.
  18. Hillman, Arye L., 2010. "Expressive behavior in economics and politics," European Journal of Political Economy, Elsevier, vol. 26(4), pages 403-418, December.
  19. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
  20. Duncan, Brian, 1999. "Modeling charitable contributions of time and money," Journal of Public Economics, Elsevier, vol. 72(2), pages 213-242, May.
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Cited by:
  1. Lilley, Andrew & Slonim, Robert, 2013. "The Price of Warm Glow," IZA Discussion Papers 7445, Institute for the Study of Labor (IZA).
  2. Alexander L. Brown & Jonathan Meer & J. Forrest Williams, 2013. "Why Do People Volunteer? An Experimental Analysis of Preferences for Time Donations," NBER Working Papers 19066, National Bureau of Economic Research, Inc.

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