The Monetary Value of Voluntary Work: Conceptual and Empirical Comparisons

The purpose of this article is to provide a comprehensive comparison of different valuation approaches for estimating the monetary value of voluntary work both conceptually and empirically. This study adds to the literature by suggesting two approaches: (1) the leisure-adjusted opportunity cost approach (OCA), which corrects for voluntary work being a leisure substitute, is suggested as an alternative to the alternative-employment wage approach (AEWA). And (2) the volunteer judgment replacement wage approach (RWA), where volunteers state a wage rate that they consider adequate for the task they perform, is suggested as an alternative to the generic RWA. Using data on volunteers in German non-profit sports clubs (n = 566), the valuations show that the monetary value of 1 h of voluntary work is highest for the generic RWA (€14.27), followed by the AEWA (€14.03), the volunteer judgment RWA (€9.98), and the leisure-adjusted OCA (€1.78).