mechanisms of crowding-out and crowding-in: private contributions in 20 european welfare states

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Mechanisms of Crowding-Out and Crowding-In Arjen de Wit Philanthropic Studies, VU Amsterdam ESS workshop, May 22, 2015 Private Contributions in 20 European Welfare States

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Mechanisms of Crowding-Out and Crowding-In

Arjen de WitPhilanthropic Studies, VU Amsterdam

ESS workshop, May 22, 2015

Private Contributions in 20 European Welfare States

Private participation in welfare states

Economy: altruism Sociology/Political Science:

(new) institutionalism

Private participation in welfare states

Economy: altruism Sociology/Political Science:

(new) institutionalism

“For every welfare state, if social obligations become increasingly public, then its institutional arrangements crowd out private obligations or make them at least no longer necessary”

(Van Oorschot and Arts 2005: 2)

Three mechanisms

Public funding affects reputation and fundraising strategies of organizations

Government spending increase individual resources

People adopt values of welfare state regime

Three mechanisms

Public funding affects reputation and fundraising strategies of organizations

Government spending increase individual resources

People adopt values of welfare state regime

→ More valid testing

Private contributions in the ESS

“For each of the voluntary organizations I will now mention, please use this card to tell me whether any of these things apply to you now or in the last 12 months, and, if so, which” Donated money Voluntary work

Organizations

OECD: Official Development Assistance (ODA)

OECD: Subsidies to international aid organizations

15 countries

Organizations

Predicted probabilities of donating to international aid at different levels of ODA

Organizations

ODA0

0.01

0.01

0.02

0.02

0.03

Coefficients from random-effects logistic regression on donating to international aid, full sample and excluding one country at the time

Organizations

ODA0

0.01

0.01

0.02

0.02

0.03

Coefficients from random-effects logistic regression on donating to international aid, full sample and excluding one country at the time

Exc. DK

Organizations

Subsidies0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

Coefficients from random-effects logistic regression on donating to international aid, full sample and excluding one country at the time

Organizations

Subsidies0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

Coefficients from random-effects logistic regression on donating to international aid, full sample and excluding one country at the time

Exc. NO

Resources

IMF: Government spending on social protection and education

17 countries

Resources

Predicted probabilities of donating to international aid at different levels of expenditures

Resources

Expenditures0

0.02

0.04

0.06

0.08

0.1

0.12

Coefficients from random-effects logistic regression on donating to international aid, full sample and excluding one country at the time

Resources

Expenditures0

0.02

0.04

0.06

0.08

0.1

0.12

Coefficients from random-effects logistic regression on donating to international aid, full sample and excluding one country at the time

Exc. ES

Resources

Expenditures0

0.02

0.04

0.06

0.08

0.1

0.12

Coefficients from random-effects logistic regression on donating to international aid, full sample and excluding one country at the time

Exc. SE

Exc. ES

Values

OECD: social expenditures Van Vliet and Caminada's (2012)

unemployment replacement rate 17 countries

Values

Social expenditures0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

Coefficients from random-effects logistic regression on donating to international aid, full sample and excluding one country at the time

Values

Social expenditures0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

Coefficients from random-effects logistic regression on donating to international aid, full sample and excluding one country at the time

Exc. PT

Values

Replacement rate

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

Coefficients from random-effects logistic regression on donating to international aid, full sample and excluding one country at the time

Conclusions

Welfare state only moderately affects private contributions

Conclusions

Welfare state only moderately affects private contributions

Substantial country differences

Conclusions

Welfare state only moderately affects private contributions

Substantial country differences

→ Check and report robustness

forvalues i = 1(1)20 { xtreg y x if groupvar!=`i‘ }

Thank you

Arjen de WitPhilanthropic Studies, VU University Amsterdam

[email protected]