Where Activity Without Pay Pays Off: International Evidence on Participating in Voluntary Associations and Wages.

Empirical evidence from single-country studies on the relation between volunteering and wages is mixed. This paper uses an international framework to show that the relation between activities in voluntary associations and wages differs depending on country-specific factors. In particular, we argue that participating in voluntary associations serves as a signal in collectivistic (as opposed to individualistic) countries and is therefore positively related to wages. In countries with a low (as opposed to high) formal educational level, the human capital effects of participating are strong; therefore, activities in voluntary associations correlate with wages positively. Using data on 9295 individuals from 17 countries, we confirm that the relation between participating in voluntary associations and wage is positive but declines (1) as individualism increases and (2) as formal educational levels increase. In countries with high values for individualism or very high formal education levels, the relation between activities in voluntary associations and wage becomes negative. [ABSTRACT FROM AUTHOR]