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

31 Pages Posted: 21 Jul 2012

See all articles by Thomas K. Bauer

Thomas K. Bauer

Rhine-Westphalia Institute for Economic Research (RWI-Essen); University of Bochum - Faculty of Economics; IZA Institute of Labor Economics

Julia Bredtmann

RWI – Leibniz Institute for Economic Research; IZA; University College London - CReAM - Centre for Research and Analysis of Migration

Christoph M. Schmidt

RWI - Leibniz-Insitut für Wirtschaftsforschung (RWI Essen); Ruhr-Universität Bochum (RUB); Institute for the Study of Labor (IZA); Centre for Economic Policy Research (CEPR)

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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.

Keywords: private philanthropy, charitable contribution, voluntary organizations

JEL Classification: H41, J22, L31

Suggested Citation

Bauer, Thomas K. and Bredtmann, Julia and Schmidt, Christoph M., Time vs. Money: The Supply of Voluntary Labor and Charitable Donations Across Europe. IZA Discussion Paper No. 6701, Available at SSRN: https://ssrn.com/abstract=2114881

Thomas K. Bauer (Contact Author)

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

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Julia Bredtmann

RWI – Leibniz Institute for Economic Research ( email )

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Essen, 45128
Germany

IZA

University College London - CReAM - Centre for Research and Analysis of Migration

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Christoph M. Schmidt

RWI - Leibniz-Insitut für Wirtschaftsforschung (RWI Essen) ( email )

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Essen, 45128
Germany
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Ruhr-Universität Bochum (RUB)

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Germany

Institute for the Study of Labor (IZA)

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Germany

Centre for Economic Policy Research (CEPR)

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United Kingdom

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