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Arjen de Wit ERNOP Conference, Riga July 11, 2013 Mechanisms of crowding-out and crowding-in Private contributions to international aid in 18 European welfare states

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Presentation at ERNOP International Conference, Riga, July 11

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Page 1: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Arjen de WitERNOP Conference, Riga

July 11, 2013

Mechanisms of crowding-out and crowding-in

Private contributions to international aid in 18 European welfare states

Page 2: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

So what?● Welfare states under pressure● How are private contributions affected by

(changes in) institutions?– Do citizens contribute more in smaller

welfare states?– Or do generous welfare states

encourage private contributions?

Page 3: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Crowding-out research● Theoretical foundations: Alexis de

Tocqueville, Robert Nisbet, Milton Friedman● Most current research Anglo-American● Two strands of research:

– Economics– Sociology

Page 4: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Crowding-out research● Theoretical foundations: Alexis de

Tocqueville, Robert Nisbet, Milton Friedman● Most current research Anglo-American● Two strands of research:

– Economics– Sociology

● Paradox: there is evidence for crowding-out, but hardly in survey studies

Page 5: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

The challenge● Under which conditions does crowding-out

occur?● Does crowding-out exist for giving money

as well as other forms of participation?● How can it be explained?

Page 6: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Data and method● European Social Survey 2002● No. of countries: 20● N = 38,959● Donated money / did voluntary work in last

12 months (yes/no)● Country data: IMF, OECD● Multilevel random-effects logistic regression

Page 7: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Data and method● European Social Survey 2002● No. of countries: 20 18● N = 38,959 32,870● Donated money / did voluntary work in last

12 months (yes/no)● Country data: IMF, OECD● Multilevel random-effects logistic regression

Page 8: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Data and method● European Social Survey 2002● No. of countries: 20 18 17● N = 38,959 32,870 31,466● Donated money / did voluntary work in last

12 months (yes/no)● Country data: IMF, OECD● Multilevel random-effects logistic regression

Page 9: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Data and method● European Social Survey 2002● No. of countries: 20 18 17 15● N = 38,959 32,870 31,466 28,188● Donated money / did voluntary work in last

12 months (yes/no)● Country data: IMF, OECD● Multilevel random-effects logistic regression

Page 10: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Mechanisms● Welfare state expenditures in a sector

affect organisations in that sector● Total welfare state expenditures affect

people's resources● Welfare state regime type affects people's

values

Page 11: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Testing the mechanisms (1)● Welfare state expenditures in a sector

affect organisations in that sector● Total welfare state expenditures affect

people's resources● Welfare state regime type affects people's

values

Page 12: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Higher international aid, more giving..

0

1

2

3

4

5

ODAODA controlled for subsidies to NGOs

Odds ratios on donating money to international aid organisations

15 countriesN = 28,188

*

Page 13: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

...partly explained by organisation effects

0

1

2

3

4

5

ODAODA controlled for subsidies to NGOs

Odds ratios on donating money to international aid organisations

*

*

15 countriesN = 28,188

Page 14: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Effects smaller for volunteering

0

1

2

3

4

5

ODAODA controlled for subsidies to NGOs

Odds ratios on volunteering in international aid organisations

* *

15 countriesN = 28,188

Page 15: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Testing the mechanisms (2)● Welfare state expenditures in a sector

affect organisations in that sector● Total welfare state expenditures affect

people's resources● Welfare state regime type affects people's

values

Page 16: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Expenditures have no effect on giving

0

0.5

1

1.5

2

ExpendituresExpenditures controlled for educationExpenditures controlled for education and income security

Odds ratios on donating money to international aid organisations

17 countriesN = 31,466

Page 17: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Expenditures have no effect on giving

0

0.5

1

1.5

2

ExpendituresExpenditures controlled for educationExpenditures controlled for education and income security

Odds ratios on donating money to international aid organisations

17 countriesN = 31,466

Page 18: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Expenditures have no effect on giving

0

0.5

1

1.5

2

ExpendituresExpenditures controlled for educationExpenditures controlled for education and income security

Odds ratios on donating money to international aid organisations

17 countriesN = 31,466

Page 19: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

No effects for volunteering either

0

0.5

1

1.5

2

ExpendituresExpenditures controlled for educationExpenditures controlled for education and income security

Odds ratios on volunteering in international aid organisations

17 countriesN = 31,466

(*)

Page 20: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Testing the mechanisms (3)● Welfare state expenditures in a sector

affect organisations in that sector● Total welfare state expenditures affect

people's resources● Welfare state regime type affects people's

values

Page 21: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Welfare state regime types

UniversalismDe-commodification Low High

Low Anglo-Saxon and MediterraneanUK, IL, IT, ES, PT

Central and Eastern EuropeanHU, PL, SI

High ConservativeFR, DE, AT, BE, LU

SocialistFI, NL, DK, SE, NO

Page 22: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Welfare state regime type matters...

CEE Conservative Socialist0

1

2

3

4

5

Regime typeRegime type controlled for values of solidarityRegime type controlled for solidarity and trust

Odds ratios on donating money to international aid organisations

18 countriesN = 32,870

(*)

*

(*)

Page 23: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Welfare state regime type matters...

CEE Conservative Socialist0

1

2

3

4

5

Regime typeRegime type controlled for values of solidarityRegime type controlled for solidarity and trust

Odds ratios on donating money to international aid organisations

18 countriesN = 32,870

(*) *

**

(*)

Page 24: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

..partly because it encourages trust

CEE Conservative Socialist0

1

2

3

4

5

Regime typeRegime type controlled for values of solidarityRegime type controlled for solidarity and trust

Odds ratios on donating money to international aid organisations

18 countriesN = 32,870

(*) *

**

*

(*)

(*)

Page 25: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Same (but smaller) effects for volunteering

CEE Conservative Socialist0

1

2

3

4

5

Regime typeRegime type controlled for values of solidarityRegime type controlled for solidarity and trust

Odds ratios on volunteering in international aid organisations

18 countriesN = 32,870

*

*

Page 26: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Same (but smaller) effects for volunteering

CEE Conservative Socialist0

1

2

3

4

5

Regime typeRegime type controlled for values of solidarityRegime type controlled for solidarity and trust

Odds ratios on volunteering in international aid organisations

18 countriesN = 32,870

* *

**

Page 27: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Same (but smaller) effects for volunteering

CEE Conservative Socialist0

1

2

3

4

5

Regime typeRegime type controlled for values of solidarityRegime type controlled for solidarity and trust

Odds ratios on volunteering in international aid organisations

18 countriesN = 32,870

* *

***

*

Page 28: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Conclusions● Crowding-in when looking at sector● No resources mechanism● Welfare state regime type matters (but

how?)● Same effects for giving and volunteering

Page 29: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Towards better crowding-out research

● More specific variables● Testing mechanisms● Testing conditions● Testing causality

Page 30: Mechanisms of crowding-out and crowding-in: private contributions to international aid in 18 European welfare states

Arjen de WitCenter for Philanthropic Studies

VU University Amsterdam

[email protected]

Thank you