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Voluntary work and wages

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  • Bruna Bruno
  • Damiano Fiorillo

Abstract

The effects of voluntary work on earnings have recently been studied for some developed countries such as Canada, France and Austria. This paper extends this line of research to Italy, using data from the European Union Statistics on Income and Living Conditions (EU-SILC) dataset. A double methodological approach is used in order to control for unobserved heterogeneity: Heckman and IV methods are employed to account for unobserved worker heterogeneity and endogeneity bias. Empirical results show that, when the unobserved heterogeneity is taken into account, a wage premium of 2.7 percent emerges, quite small if compared to previous investigations on Canada and Austria. The investigation into the channels of influence of volunteering on wages gives support to the hypotheses that volunteering enables the access to fruitful informal networks, avoids the human capital deterioration and provides a signal for intrinsically motivated individuals.

Suggested Citation

  • Bruna Bruno & Damiano Fiorillo, 2014. "Voluntary work and wages," EERI Research Paper Series EERI RP 2014/05, Economics and Econometrics Research Institute (EERI), Brussels.
  • Handle: RePEc:eei:rpaper:eeri_rp_2014_05
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    References listed on IDEAS

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    Cited by:

    1. Fiorillo, Damiano & Nappo, Nunzia, 2014. "Volunteering and perceived health. A European cross-countries investigation," MPRA Paper 72313, University Library of Munich, Germany, revised 2016.
    2. Fiorillo, Damiano & Nappo, Nunzia, 2014. "Formal and informal volunteering and health across European countries," MPRA Paper 60210, University Library of Munich, Germany.

    More about this item

    Keywords

    Voluntary work; wages; Mincer equation; selection bias; instrumental variables; Italy.;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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