Does it Pay to Work for Free? Negative Selection and the Wage Returns to Volunteer Experience

28 Pages Posted: 5 Nov 2017

See all articles by Guido Cozzi

Guido Cozzi

University of St. Gallen

Noemi Mantovan

Bangor University - Bangor University

Robert M. Sauer

University of London - Royal Holloway College

Date Written: December 2017

Abstract

This paper offers the first instrumental variables estimates of the wage returns to volunteer experience. The returns are substantial and differ considerably by gender. The results imply that the unequal valuation of volunteer experience by gender is more important in explaining the gender earnings gap than is the unequal valuation of part‐time paid work experience. The results also indicate negative selection into unpaid work. In a simple model of optimal volunteering, negative selection implies that a lower cost of volunteering would produce both an expanded and higher‐skilled pool of volunteers, and greater societal benefits from volunteer work.

Suggested Citation

Cozzi, Guido and Mantovan, Noemi and Sauer, Robert M., Does it Pay to Work for Free? Negative Selection and the Wage Returns to Volunteer Experience (December 2017). Oxford Bulletin of Economics and Statistics, Vol. 79, Issue 6, pp. 1018-1045, 2017, Available at SSRN: https://ssrn.com/abstract=3064386 or http://dx.doi.org/10.1111/obes.12183

Guido Cozzi (Contact Author)

University of St. Gallen ( email )

Noemi Mantovan

Bangor University - Bangor University ( email )

Bangor, Wales LL57 2DG
United Kingdom

Robert M. Sauer

University of London - Royal Holloway College ( email )

Senate House
Malet Street
London, TW20 0EX
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
203
PlumX Metrics