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On Time and Money Donations

Author Info

  • Lorenzo Cappellari

    ()

    (DISCE, Università Cattolica)

  • Paolo Ghinetti

    ()

    (DISCE, Università Cattolica)

  • Gilberto Turati

    ()

    (Dipartimento di Scienze Economiche e Finanziarie " G. Prato", Università di Torino)

Abstract

This paper investigates the determinants of time and money gifts. We first develop a behavioural model which accounts for both types of donations, as well as decisions about domestic and market hours of work. We then investigate the issue empirically, using survey data for Italy. Results suggest that, according to the theoretical predictions, proxies for “warm glow”, reputational concerns and (impure) altruism are important determinants of giving. Moreover, the unobservable determinants driving money and time donations are positively correlated, suggesting a certain degree of complementarity between the two decisions.

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File URL: http://www.unicatt.it/Istituti/EconomiaImpresaLavoro/Quaderni/ieil0047.pdf
File Function: First version, 2007
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Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro with number ieil0047.

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Length: 37
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:ctc:serie4:ieil0047
Contact details of provider: Web page: http://www.unicatt.it/Istituti/EconomiaImpresaLavoro
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Keywords: Volunteering; Money donations; Household behaviour.;

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Find related papers by JEL classification:
  • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
  • D1 - Microeconomics - - Household Behavior

References listed on IDEAS
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  1. Randolph, William C, 1995. "Dynamic Income, Progressive Taxes, and the Timing of Charitable Contributions," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 709-38, August.
  2. Paul S. Carlin, 2001. "Evidence on the Volunteer Labor Supply of Married Women," Southern Economic Journal, Southern Economic Association, vol. 67(4), pages 801-824, April.
  3. Gerald E. Auten & Holger Sieg & Charles T. Clotfelter, 2002. "Charitable Giving, Income, and Taxes: An Analysis of Panel Data," American Economic Review, American Economic Association, vol. 92(1), pages 371-382, March.
  4. Benabou, Roland & Tirole, Jean, 2005. "Incentives and Prosocial Behavior," IZA Discussion Papers 1695, Institute for the Study of Labor (IZA).
  5. Harbaugh, William T., 1998. "What do donations buy?: A model of philanthropy based on prestige and warm glow," Journal of Public Economics, Elsevier, vol. 67(2), pages 269-284, February.
  6. Menchik, Paul L. & Weisbrod, Burton A., 1987. "Volunteer labor supply," Journal of Public Economics, Elsevier, vol. 32(2), pages 159-183, March.
  7. Ellingsen, Tore & Johannesson, Magnus, 2009. "Time is not money," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 96-102, October.
  8. Duncan, Brian, 1999. "Modeling charitable contributions of time and money," Journal of Public Economics, Elsevier, vol. 72(2), pages 213-242, May.
  9. Durlauf,S.N., 2001. "On the empirics of social capital," Working papers 3, Wisconsin Madison - Social Systems.
  10. Andreoni, James & Vesterlund, Lise, 2001. "Which is the Fair Sex? Gender Differences in Altruism," Staff General Research Papers 1951, Iowa State University, Department of Economics.
  11. Ellingsen, Tore & Johannesson, Magnus, 2006. "Pride and Prejudice: The Human Side of Incentive Theory," CEPR Discussion Papers 5768, C.E.P.R. Discussion Papers.
  12. Kooreman, P. & Kapteyn, A.J., 1984. "A disaggregated analysis of the allocation of time within the household," Research Memorandum FEW 153, Tilburg University, School of Economics and Management.
  13. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 489-520.
  14. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-74, June.
  15. Richard B. Freeman, 1996. "Working for Nothing: The Supply of Volunteer Labor," NBER Working Papers 5435, National Bureau of Economic Research, Inc.
  16. Charlene M. Kalenkoski & David C. Ribar & Leslie S. Stratton, 2005. "Parental Child Care in Single-Parent, Cohabiting, and Married-Couple Families: Time-Diary Evidence from the United Kingdom," American Economic Review, American Economic Association, vol. 95(2), pages 194-198, May.
  17. James Andreoni & A. Abigail Payne, 2003. "Do Government Grants to Private Charities Crowd Out Giving or Fund-raising?," American Economic Review, American Economic Association, vol. 93(3), pages 792-812, June.
  18. 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.
  19. 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.
  20. Khanna, Jyoti & Sandler, Todd, 2000. "Partners in giving:: The crowding-in effects of UK government grants," European Economic Review, Elsevier, vol. 44(8), pages 1543-1556, August.
  21. Prendergast, Canice & Stole, Lars, 2001. "The non-monetary nature of gifts," European Economic Review, Elsevier, vol. 45(10), pages 1793-1810, December.
  22. Caitlin Knowles Myers & Jeffrey Carpenter, 2007. "Why Volunteer? Evidence on the Role of Altruism, Reputation, and Incentives," Middlebury College Working Paper Series 0712, Middlebury College, Department of Economics.
  23. 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.
  24. Walter O. Simmons & Rosemarie Emanuele, 2004. "Does Government Spending Crowd Out Donations of Time and Money?," Public Finance Review, , vol. 32(5), pages 498-511, September.
  25. 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.
  26. 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.
  27. Reuben Gronau, 1976. "Leisure, Home Production and Work--The Theory of The Allocation of Time Revisited," NBER Working Papers 0137, National Bureau of Economic Research, Inc.
  28. 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.
  29. repec:ebl:ecbull:v:10:y:2002:i:1:p:1-14 is not listed on IDEAS
  30. Francois Vaillancourt, 1994. "To Volunteer or Not: Canada, 1987," Canadian Journal of Economics, Canadian Economics Association, vol. 27(4), pages 813-26, November.
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Cited by:

  1. Florence Neymotin, 2016. "Individuals and Communities: the Importance of Neighbors Volunteering," Journal of Labor Research, Springer, vol. 37(2), pages 149-178, June.
  2. Shibly Shahrier & Koji Kotani, 2015. "Characterizing voluntary donations for natural disaster mitigation in a third world country: A case of Bangladesh," Working Papers SDES-2015-25, Kochi University of Technology, School of Economics and Management, revised Dec 2015.
  3. 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.
  4. Damiano, Fiorillo, 2008. "Offerta di Attivita' Gratuita in Italia: una analisi micro-econometrica," CELPE Discussion Papers 107, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  5. Damiano Fiorillo, 2012. "Volunteer work and domain satisfactions: evidence from Italy," International Journal of Social Economics, Emerald Group Publishing, vol. 39(2), pages 97-124, January.
  6. Bruno, Bruna & Fiorillo, Damiano, 2012. "Why without pay? Intrinsic motivation in the unpaid labour supply," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 659-669.
  7. Guttman, Joel M. & Goette, Lorenz, 2015. "Reputation, volunteering, and trust: Minimizing reliance on taste-based explanations," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 375-386.
  8. Bruna, Bruno & Damiano, Fiorillo, 2009. "Why without Pay? The Intrinsic Motivation between Investment and Consumption in Unpaid Labour Supply," CELPE Discussion Papers 111, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  9. Ekaterina Melnik & Jean-Benoît Zimmermann, 2015. "The We and the I: The Logic of Voluntary Associations," AMSE Working Papers 1502, Aix-Marseille School of Economics, Marseille, France.
  10. Shibly Shahrier & Koji Kotani, 2015. "Labor donation or money donation? Pro-sociality on prevention of natural disasters in a case of cyclone AILA, Bangladesh," Working Papers SDES-2015-7, Kochi University of Technology, School of Economics and Management, revised Jan 2015.
  11. Marcus Dittrich & Bianka Mey, 2015. "Gender differences in volunteer activities: Evidence from German survey data," Economics Bulletin, AccessEcon, vol. 35(1), pages 349-360.
  12. Backus, Peter, 2010. "Is charity a homogeneous good?," The Warwick Economics Research Paper Series (TWERPS) 951, University of Warwick, Department of Economics.
  13. Damiano Fiorillo, 2009. "Do monetary rewards crowd out intrinsic motivations of volunteers? Some empirical evidence for Italian volunteers," Discussion Papers 3_2009, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  14. Anastasia Danilov & Timo Vogelsang, 2014. "Time for Helping," Cologne Graduate School Working Paper Series 05-05, Cologne Graduate School in Management, Economics and Social Sciences.
  15. Huhtala, Anni, 2010. "Income effects and the inconvenience of private provision of public goods for bads: The case of recycling in Finland," Ecological Economics, Elsevier, vol. 69(8), pages 1675-1681, June.
  16. García-Valiñas, María A. & Macintyre, Alison & Torgler, Benno, 2012. "Volunteering, pro-environmental attitudes and norms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 455-467.
  17. Brown, Sarah & Taylor, Karl, 2015. "Charitable Behaviour and the Big Five Personality Traits: Evidence from UK Panel Data," IZA Discussion Papers 9318, Institute for the Study of Labor (IZA).
  18. Bruna Bruno & Damiano Fiorillo, 2011. "Why without pay? Intrinsic motivation in unpaid labour supply," Discussion Papers 3_2011, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.

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