Are volunteers substitute for paid labor in nonprofit organizations?
This study asks whether nonprofit organizations that use volunteer labor are seen as substituting volunteers for paid labor. The study contributes to the literature on the demand for volunteer labor by utilizing current data on giving and volunteering and explicitly accounting for a state's minimum wage among its explanatory variables. We find a statistically significant positive relationship between the prevailing minimum wage in a state and the amount of volunteer labor offered by donors in each state--implying that organizations that use volunteers view them as substitutes to low-paid workers.
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"Working for Nothing: The Supply of Volunteer Labor,"
NBER Working Papers
5435, National Bureau of Economic Research, Inc.
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- Roberts, Russell D, 1984. "A Positive Model of Private Charity and Public Transfers," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 136-148, February.
- Weisbrod, Burton A, 1983. "Nonprofit and Proprietary Sector Behavior: Wage Differentials among Lawyers," Journal of Labor Economics, University of Chicago Press, vol. 1(3), pages 246-263, July.
- Wei-Chiao Huang & Subhash C. Ray, 1986. "Labor Supply, Voluntary Work, and Charitable Contributions in a Model of Utility Maximization," Eastern Economic Journal, Eastern Economic Association, vol. 12(3), pages 257-263, Jul-Sep.
- 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, vol. 47(3), pages 321-341, April.
- 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.
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