The Opportunity Costs of Volunteering: Evidence From Germany

Abstract

This study analyzes the effect of opportunity costs on the decision to volunteer, the extent of volunteering, and how opportunity costs are related to competing volunteering activities. Our results reveal that opportunity costs operationalized as net wage per hour had the predicted negative effect on the extent of volunteering but a positive effect on the decision to volunteer. When the individual hourly net wage of the surveyed volunteers is applied, volunteering has average opportunity costs of about 14€/h. As volunteering competes with other activities, we assigned opportunity costs to different activities such as family, hobbies, paid work, or spending time with friends. Results show that, overall, opportunity costs of volunteering are especially related to family activities and less so to paid work. This implies that volunteering activities, in general, compete with family activities rather than with paid work or other activities.