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Time vs. money — The supply of voluntary labor and charitable donations across Europe

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  • Bauer, Thomas K.
  • Bredtmann, Julia
  • Schmidt, Christoph M.

Abstract

In spite of its importance for civil society, we know relatively little about the way in which individuals spend their time and money in the charitable provision of goods and services. In this paper, we provide a comprehensive picture of the philanthropic behavior in Europe by analyzing both, the correlates of individuals' charitable cash donations and volunteer labor as well as their interdependence. Using data from the European Social Survey, we document a positive correlation between time and money contributions on the individual as well as on the country level. In addition, we find evidence that individuals substitute time donations by money donations as their time offered to the market increases. Moreover, analyzing philanthropic behavior on the disaggregated level reveals large differences in the determinants and the relationship of time and money donations in Europe – both across different types of voluntary organizations and across different welfare regimes.

Suggested Citation

  • Bauer, Thomas K. & Bredtmann, Julia & Schmidt, Christoph M., 2013. "Time vs. money — The supply of voluntary labor and charitable donations across Europe," European Journal of Political Economy, Elsevier, vol. 32(C), pages 80-94.
  • Handle: RePEc:eee:poleco:v:32:y:2013:i:c:p:80-94
    DOI: 10.1016/j.ejpoleco.2013.06.006
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    1. repec:spr:envpol:v:21:y:2019:i:1:d:10.1007_s10018-018-0221-1 is not listed on IDEAS
    2. Shibly Shahrier & Koji Kotani, 2019. "Natural disaster mitigation through voluntary donations in a developing country: the case of Bangladesh," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(1), pages 37-60, January.
    3. 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.
    4. Florence Neymotin, 2016. "Individuals and Communities: the Importance of Neighbors Volunteering," Journal of Labor Research, Springer, vol. 37(2), pages 149-178, June.
    5. Lilley, Andrew & Slonim, Robert, 2014. "The price of warm glow," Journal of Public Economics, Elsevier, vol. 114(C), pages 58-74.
    6. Lorna Zischka & Marina Della Giusta, 2016. "Helping without Trusting: Disentangling Prosocial Behaviours," Economics & Management Discussion Papers em-dp2016-11, Henley Business School, Reading University.
    7. Shibly Shahrier & Koji Kotani, 2016. "Labor Donation Or Money Donation? Pro-Sociality On Prevention Of Natural Disasters In A Case Of Cyclone Aila, Bangladesh," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-26, March.
    8. Nikolova, Milena & Roman, Monica & Zimmermann, Klaus F., 2017. "Left behind but doing good? Civic engagement in two post-socialist countries," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 658-684.
    9. Hallmann, Kirstin, 2015. "Modelling the decision to volunteer in organised sports," Sport Management Review, Elsevier, vol. 18(3), pages 448-463.
    10. Julia Bredtmann, 2016. "Does government spending crowd out voluntary labor and donations?," IZA World of Labor, Institute of Labor Economics (IZA), pages 299-299, September.
    11. Lorna Zischka & Mark Casson & Marina Della Giusta, 2016. "'Cast your bread upon the waters, for you will find it after many days.' A BHPS study of the interaction between giving and welfare," Economics & Management Discussion Papers em-dp2016-10, Henley Business School, Reading University.
    12. Sarah Brown & Karl Taylor, 2019. "Charitable Behaviour and Political Ideology: Evidence for the UK," Working Papers 2019002, The University of Sheffield, Department of Economics.
    13. Simixhiu, Amantia & Ziegler, Andreas, 2018. "On the relevance of income and behavioral factors for absolute and relative donations: A framed field experiment," Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181600, Verein für Socialpolitik / German Economic Association.
    14. Erik Ansink & Hans-Peter Weikard & Cees Withagen, 2015. "International Environmental Agreements with Support," Tinbergen Institute Discussion Papers 15-015/VIII, Tinbergen Institute, revised 07 Jul 2017.
    15. Lorna Zischka, 2016. "The Interaction between Prosocial (Giving) Behaviours and Social Cohesion," Economics & Management Discussion Papers em-dp2016-07, Henley Business School, Reading University.
    16. Jonathan Morduch & Ariane Szafarz, 2018. "Earning to Give: Occupational Choice for Effective Altruists," Working Papers CEB 18-017, ULB -- Universite Libre de Bruxelles.
    17. Davide Dottori & Caterina Giannetti, 2017. "The effect of time preferences on altruism," Discussion Papers 2017/226, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    18. Shibly Shahrier & Koji Kotani & Makoto Kakinaka, 2017. "Religiosity may not be a panacea: Importance of prosociality to maintain humanitarian donations," Working Papers SDES-2017-23, Kochi University of Technology, School of Economics and Management, revised Nov 2017.

    More about this item

    Keywords

    Private philanthropy; Charitable contribution; Voluntary organizations; Civic engagement;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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