Measuring the importance of volunteer work in the Åland Islands : Conference paper for 53rd ERSA Congress 27-31 August 2013, Palermo, Sicily

This study gauges the extent and the effects of volunteer work by associations in the Åland Islands. First, a review of volunteer associations in Åland was conducted. Extensive economic data was coupled with mail surveys and interviews with key persons. Second, estimation of the volume and the monetary value of volunteer work were carried out. In addition, economy-wide effects of volunteer work were gauged through a scenario in which volunteer work was turned into municipality-financed paid work. This scenario was analysed with a dynamic CGE model of Åland. On the basis of data from around 110 volunteer associations, we estimated the yearly amount of volunteer work to 830,000 hours in Åland. Turning the volunteer work into municipality-financed paid work would incur additional costs of around 34 million euro to Åland's municipalities. The additional cost would have to be financed by increased municipal income taxes. The increase in taxes would cause a small additional loss in welfare, when measured by equivalent variation, totalling around 36 million euro. The result is sensitive to assumptions concerning the elasticity of labour supply to changes in net earnings.