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Are volunteers substitute for paid labor in nonprofit organizations?

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  • Simmons, Walter O.
  • Emanuele, Rosemarie

Abstract

This study asks whether nonprofit organizations that use volunteer labor are seen as substituting volunteers for paid labor. The study contributes to the literature on the demand for volunteer labor by utilizing current data on giving and volunteering and explicitly accounting for a state's minimum wage among its explanatory variables. We find a statistically significant positive relationship between the prevailing minimum wage in a state and the amount of volunteer labor offered by donors in each state--implying that organizations that use volunteers view them as substitutes to low-paid workers.

Suggested Citation

  • Simmons, Walter O. & Emanuele, Rosemarie, 2010. "Are volunteers substitute for paid labor in nonprofit organizations?," Journal of Economics and Business, Elsevier, vol. 62(1), pages 65-77, January.
    • Handle: RePEc:eee:jebusi:v:62:y:2010:i:1:p:65-77
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    References listed on IDEAS

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    1. Preston, Anne E, 1989. "The Nonprofit Worker in a For-Profit World," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 438-463, October.
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    4. Walter O. Simmons & Rosemarie Emanuele, 2007. "Male‐female giving differentials: are women more altruistic?," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 34(6), pages 534-550, November.
    5. Wei-Chiao Huang & Subhash C. Ray, 1986. "Labor Supply, Voluntary Work, and Charitable Contributions in a Model of Utility Maximization," Eastern Economic Journal, Eastern Economic Association, vol. 12(3), pages 257-263, Jul-Sep.
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    7. Kathleen M. Day & Rose Anne Devlin, 1996. "Volunteerism and Crowding Out: Canadian Econometric Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 37-53, February.
    8. Freeman, Richard B, 1997. "Working for Nothing: The Supply of Volunteer Labor," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 140-166, January.
    9. Duncan, Brian, 1999. "Modeling charitable contributions of time and money," Journal of Public Economics, Elsevier, vol. 72(2), pages 213-242, May.
    10. Lewis M. Segal & Burton A. Weisbrod, 2002. "Volunteer labor sorting across industries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(3), pages 427-447.
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    13. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
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    Cited by:

    1. Benjamin Bittschi & Astrid Pennerstorfer & Ulrike Schneider, 2015. "Paid and Unpaid Labour in Non-Profit Organizations: Does the Substitution Effect Exist?," British Journal of Industrial Relations, London School of Economics, vol. 53(4), pages 789-815, December.
    2. Mihaela PACESILA & Sofia Elena COLESCA & Stefan Gabriel BURCEA, 2017. "The Role Of Volunteering In Modern Societies," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 11(1), pages 349-358, November.

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