Donating Time or Money: Are they Substitutes or Complements?
Decisions to donate time or money for charitable purposes are typically seen as make-or-buy decisions, implying that there should be a clear distinction between individuals engaging in one of these two forms of giving and that this distinction should be somehow linked to opportunity costs. But this is not at all what we observe in micro-level data. We therefore suggest an alternative explanation by which time and cash donations are complements rather than substitutes. Assuming that there is asymmetric information about charities’ activities and their effectiveness, doing volunteer work may serve as a screening mechanism enabling donors to better assess the use that is made of the money they could contribute. We formalize this idea and, building on the European Social Survey (ESS), we also provide empirical evidence regarding the co-variation of volunteering and donating money which is suited to support our view.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kathleen Day & Rose Annue Devlin, 1998.
"The Payoff to Work without Pay: Volunteer Work as an Investment in Human Capital,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 31(5), pages 1179-1191, November.
- Day, K.M. & Devlin, R.A., 1993. "The Payoff to Work without Pay: Volunteer Work as an Investment in Human Capital," Working Papers 9310e, University of Ottawa, Department of Economics.
- Naomi E. Feldman, 2010. "Time Is Money: Choosing between Charitable Activities," American Economic Journal: Economic Policy, American Economic Association, vol. 2(1), pages 103-30, February.
- 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.
- Dokko, Jane K., 2009. "Does the NEA Crowd Out Private Charitable Contributions to the Arts?," National Tax Journal, National Tax Association, vol. 62(1), pages 57-75, March.
- Karlan, Dean & List, Jonathan A., 2012.
"How Can Bill and Melinda Gates Increase Other People's Donations to Fund Public Goods?,"
101, Yale University, Department of Economics.
- Karlan, Dean S. & List, John, 2012. "How Can Bill and Melinda Gates Increase Other People's Donations to Fund Public Goods?," CEPR Discussion Papers 8922, C.E.P.R. Discussion Papers.
- Dean Karlan & John A. List, 2012. "How Can Bill and Melinda Gates Increase Other People's Donations to Fund Public Goods?," NBER Working Papers 17954, National Bureau of Economic Research, Inc.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_3835. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra)
If references are entirely missing, you can add them using this form.