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The Payoff to Work without Pay: Volunteer Work as an Investment in Human Capital

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  • Kathleen Day
  • Rose Annue Devlin

Abstract

Despite the widespread belief that volunteer work enhances an individual's employment prospects, the hypothesis that volunteer work increases one's earnings has never been empirically verified. Using a recent Canadian data set, the authors test this hypothesis by estimating human capital earnings equations that include dummy variables representing to distinguish volunteers from nonvolunteers. The results suggest that the return to volunteering amounts to 6-7 percent of annual earnings.

Suggested Citation

  • Kathleen Day & Rose Annue Devlin, 1998. "The Payoff to Work without Pay: Volunteer Work as an Investment in Human Capital," Canadian Journal of Economics, Canadian Economics Association, vol. 31(5), pages 1179-1191, November.
    • Handle: RePEc:cje:issued:v:31:y:1998:i:5:p:1179-1191
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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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