Volunteering and the State

36 Pages Posted: 2 Mar 2009

See all articles by Franz Hackl

Franz Hackl

Johannes Kepler University Linz - Department of Economics

Martin Halla

Johannes Kepler University Linz - Department of Economics; IZA Institute of Labor Economics

Gerald J. Pruckner

University Linz - Department of Economics

Abstract

This paper explores the capability of the state to affect the individual's decision to work for free. For this purpose we combine individual-level data from the European and World Values Survey with macroeconomic and political variables for OECD member countries. Empirically we identify three channels for crowding out of voluntary labor. Firstly, an increase in public social expenditure decreases the probability that the individual will volunteer (fiscal crowding out). Secondly, a political consensus between individuals and the government also induces volunteers to reduce their unsalaried activities (consensual crowding out). And finally, the more a government supports democratization, the lower is the individual's engagement (participatory crowding out). Religiosity and a more unequal income distribution in a country increase individuals' willingness to volunteer.

Keywords: volunteering, voluntary labor supply, private provision of public goods, public social expenditure, political consensus, democratization

JEL Classification: H41, H44, H31, J22, I38, H11, D30, D64

Suggested Citation

Hackl, Franz and Halla, Martin and Pruckner, Gerald J., Volunteering and the State. Available at SSRN: https://ssrn.com/abstract=1351180 or http://dx.doi.org/10.2139/ssrn.1351180

Franz Hackl (Contact Author)

Johannes Kepler University Linz - Department of Economics ( email )

Altenbergerstrasse 69
A-4040 Linz, 4040
Austria

HOME PAGE: http://www.economics.uni-linz.ac.at/hackl

Martin Halla

Johannes Kepler University Linz - Department of Economics ( email )

Altenbergerstrasse 69
A-4040 Linz, 4040
Austria

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Gerald J. Pruckner

University Linz - Department of Economics ( email )

Altenbergerstr. 69
A-4040 Linz, Uper Austria 4040
Austria

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