The Impact of Direct Cash Payments on Whole Blood Supply
46 Pages Posted: 29 Feb 2016 Last revised: 7 Jan 2018
Date Written: August 8, 2017
This paper investigates the impact of monetary incentives on whole blood donations. We take advantage of a quasi-natural experiment in Germany, in which one blood donation site changes its payment scheme from remunerated to non-remunerated. All other donation sites in the same geographical area maintain their payment schemes. We show that donation volumes drop significantly after the pay drop and do not recuperate. At the same time, donation volumes increase at other paid donation sites, which is partly due to donor migration to these sites after the pay drop. Direct monetary compensation should be reconsidered as a tool to mitigate blood shortages that all collection agencies predict for the future.
Keywords: Blood donations, altruism, monetary incentives
JEL Classification: D01, D47, D64, I18
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