To Pay or Not to Pay? The Effects of Monetary Compensation on Volunteers in Sports Clubs

Previous research has shown that monetary compensation can crowd out intrinsic motivation for various activities. However, the existing evidence regarding voluntary work is limited and has produced inconclusive findings in the past. This study aims to address this research gap by investigating how monetary compensation affects the supply of voluntary work in the context of volunteer coaches in sports clubs in Germany. A propensity score matching approach is employed to consider a potential selection bias. The results show no evidence for a crowding-out phenomenon and instead indicate positive effects on the supplied hours and numerous items measuring the retention and recruitment of volunteers. The findings are robust when analyzing the sample based on whether the motivation leans more toward intrinsic or extrinsic.