The Impact of Direct Cash Payments on Whole Blood Supply

46 Pages Posted: 29 Feb 2016 Last revised: 7 Jan 2018

See all articles by David Becker

David Becker

University of Mannheim

Harald Klüter

Heidelberg University

Alexandra Niessen-Ruenzi

University of Mannheim - Department of Finance

Martin Weber

University of Mannheim - Department of Banking and Finance

Date Written: August 8, 2017

Abstract

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

Suggested Citation

Becker, David and Klüter, Harald and Niessen-Ruenzi, Alexandra and Weber, Martin, The Impact of Direct Cash Payments on Whole Blood Supply (August 8, 2017). Available at SSRN: https://ssrn.com/abstract=2738726 or http://dx.doi.org/10.2139/ssrn.2738726

David Becker

University of Mannheim

Mannheim
Germany

Harald Klüter

Heidelberg University ( email )

Grabengasse 1
Heidelberg, 69117
Germany

Alexandra Niessen-Ruenzi (Contact Author)

University of Mannheim - Department of Finance ( email )

Mannheim, 68131
Germany

Martin Weber

University of Mannheim - Department of Banking and Finance ( email )

D-68131 Mannheim
Germany
+49 621 181 1532 (Phone)
+49 621 181 1534 (Fax)

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