Does Pay Motivate Volunteers?
AbstractVolunteer work is an increasingly large, yet ill-understood sector of the economy. We show that monetary rewards undermine the intrinsic motivation of volunteers. A unique data set from Switzerland allows us to assess the effects of financial rewards on the effort put into volunteer work. There is a fairly standard pattern regarding the volunteers reaction e.g. to more labor market work hours. But we obtain the puzzling result that, when rewarded, volunteers work less. These findings are in line with a large literature in social psychology emphasizing that external rewards can undermine the intrinsic motivation for an activity. We show the implications for public policy towards volunteering.
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Bibliographic InfoPaper provided by Institute for Empirical Research in Economics - University of Zurich in its series IEW - Working Papers with number 007.
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Volunteer Work; Crowding-Out; Intrinsic Motivation; Price Incentives.;
Find related papers by JEL classification:
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-05-08 (All new papers)
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