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Volunteering and the State

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  • Hackl, Franz

    () (University of Linz)

  • Halla, Martin

    () (University of Linz)

  • Pruckner, Gerald J.

    () (University of Linz)

Abstract

This paper explores the capability of the state to affect the individual's decision to work for free. For this purpose we combine individual-level data from the European and World Values Survey with macroeconomic and political variables for OECD member countries. Empirically we identify three channels for crowding out of voluntary labor. Firstly, an increase in public social expenditure decreases the probability that the individual will volunteer (fiscal crowding out). Secondly, a political consensus between individuals and the government also induces volunteers to reduce their unsalaried activities (consensual crowding out). And finally, the more a government supports democratization, the lower is the individual's engagement (participatory crowding out). Religiosity and a more unequal income distribution in a country increase individuals’ willingness to volunteer.

Suggested Citation

  • Hackl, Franz & Halla, Martin & Pruckner, Gerald J., 2009. "Volunteering and the State," IZA Discussion Papers 4016, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4016
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    References listed on IDEAS

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    Cited by:

    1. Koen P.R. Bartels & Guido Cozzi & Noemi Mantovan, 2011. "Public Spending and Volunteering: "The Big Society", Crowding Out, and Volunteering Capital," Working Papers 2011_09, Durham University Business School.
    2. Garofalo, Maria Rosaria, 2011. "Il volontariato può sostenere lo sviluppo? Riflessioni metodologiche per la costruzione di un frame work teorico
      [Can the voluntary sector sustain the development path of an economy? Suggestions fo
      ," MPRA Paper 40008, University Library of Munich, Germany.
    3. Julia Bredtmann, 2016. "Does government spending crowd out voluntary labor and donations?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 299-299, September.
    4. Max van Lent, 2017. "Increasing the Well-Being of Others On-the-Job and Outside the Workplace," Tinbergen Institute Discussion Papers 17-061/VII, Tinbergen Institute.

    More about this item

    Keywords

    political consensus; voluntary labor supply; public social expenditure; private provision of public goods; volunteering; democratization;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • D30 - Microeconomics - - Distribution - - - General
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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