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Time vs. Money: The Supply of Voluntary Labor and Charitable Donations across Europe

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  • Bauer, Thomas K.

    () (RWI)

  • Bredtmann, Julia

    () (RWI)

  • Schmidt, Christoph M.

    () (RWI)

Abstract

Volunteering plays a prominent role in the charitable provision of goods and services, yet we know relatively little about why individuals spend time and money to the charity. Assuming that volunteering is a consumption good, we analyze the determinants of individuals' charitable cash donations and volunteer labor as well as the interdependence between both goods. Using data from the European Social Survey, we find a positive relationship between time and money contributions on the individual as well as on the country level. The hypothesis that time and money donations are gross complements, however, is not supported by our analysis, as we find evidence that individuals substitute time donations by money donations as the price of time raises. Analyzing philanthropic behavior on a disaggregated level reveals large differences in the determinants and the relationship of time and money donations – both across different types of voluntary organizations and across different welfare regimes.

Suggested Citation

  • Bauer, Thomas K. & Bredtmann, Julia & Schmidt, Christoph M., 2012. "Time vs. Money: The Supply of Voluntary Labor and Charitable Donations across Europe," IZA Discussion Papers 6701, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp6701
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    Cited by:

    1. 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.
    2. Alexander L. Brown & Jonathan Meer & J. Forrest Williams, 2019. "Why Do People Volunteer? An Experimental Analysis of Preferences for Time Donations," Management Science, INFORMS, vol. 65(4), pages 1455-1468, April.
    3. 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.
    4. 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.
    5. Hallmann, Kirstin, 2015. "Modelling the decision to volunteer in organised sports," Sport Management Review, Elsevier, vol. 18(3), pages 448-463.
    6. Erik Ansink & Cees A. Withagen, 2016. "Members, Joiners, Free-Riders, Supporters," CESifo Working Paper Series 5802, CESifo.
    7. 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.
    8. Florence Neymotin, 2016. "Individuals and Communities: the Importance of Neighbors Volunteering," Journal of Labor Research, Springer, vol. 37(2), pages 149-178, June.
    9. Lilley, Andrew & Slonim, Robert, 2014. "The price of warm glow," Journal of Public Economics, Elsevier, vol. 114(C), pages 58-74.
    10. Lorna Zischka & Marina Della Giusta, 2016. "Helping without Trusting: Disentangling Prosocial Behaviours," Economics Discussion Papers em-dp2016-11, Department of Economics, Reading University.
    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 Discussion Papers em-dp2016-10, Department of Economics, 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," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181600, Verein für Socialpolitik / German Economic Association.
    14. 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).
    15. Jakub Dostál, 2020. "Revealed value of volunteering: A volunteer centre network," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(2), pages 319-345, June.
    16. Ansink, Erik & Weikard, Hans-Peter & Withagen, Cees, 2019. "International environmental agreements with support," Journal of Environmental Economics and Management, Elsevier, vol. 97(C), pages 241-252.
    17. Yuangao Chen & Ruyi Dai & Jianrong Yao & Yixiao Li, 2019. "Donate Time or Money? The Determinants of Donation Intention in Online Crowdfunding," Sustainability, MDPI, Open Access Journal, vol. 11(16), pages 1-1, August.
    18. 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.
    19. Lorna Zischka, 2016. "The Interaction between Prosocial (Giving) Behaviours and Social Cohesion," Economics Discussion Papers em-dp2016-07, Department of Economics, Reading University.
    20. Jonathan Morduch & Ariane Szafarz, 2018. "Earning to Give: Occupational Choice for Effective Altruists," Working Papers CEB 18-017, ULB -- Universite Libre de Bruxelles.
    21. 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.

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    More about this item

    Keywords

    voluntary organizations; charitable contribution; private philanthropy;

    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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