Volunteering and well-being Cristina Rosemberg New Directions in Welfare II 8 July, Paris Motivation • Explore potential positive effects of participating on civic engagements and of taking a more active role in society. • Literature have established a positive correlation between volunteering and well-being (Li&Ferraro, 2005, Helliwell&Putman, 2004): – Formal volunteering have beneficial effects on subjective well-being, particularly on depression among older people. – Civic engagements have a robust positive correlation with happiness and life satisfaction • However, the positive correlation found in the literature could be spurious given three main problems: 1. Reverser causality: does volunteering increases subjective well-being, or is it that people with higher levels of well-being is more willing to engage in this type of activities? 2. Self-selection: are there underlying characteristics that make individuals to selected themselves into the volunteering that are also correlated with their wellbeing? 3. Omitted variables: are there factors –which can not observed- that determines a both, a higher propensity to volunteers and to report higher levels of well— being? (e.g. personality traits). Methodology (I) • Instrumental variables • Need to find an instrument (Z) that affects Mental Health indirectly just through its effects on volunteering. • More precisely, the instrument has to full-fill two requirements: 1. 2. Corr(X,Z)!=0 Corr(Z,ni)=0 Methodology (II) • Data – – – • British Household Panel Survey (BHPS) 18 waves, random sample of aprox. 10,000 individuals (5,500 British households), 15 years and older. Includes measures of well-being, volunteering, social characteristics How to measure well-being? – – Preference satisfaction, hedonic accounts, evaluation accounts Combined measures: mental health GHQ12 • • • • • • • Brief self-report measure, with ‘excellent’ properties as a screening instrument for psychiatric disorders in nonclinical settings (Goldberg & Williams, 1988). Use extensively in medical, psychological and sociological research. GHQ-12 comprises six ‘ positive ’ and six ‘negative’ items concerning the past few weeks. Presence or intensity of the state is ranked by the respondent using a 4-point scale. It cover issues of social functioning (feeling capable of making decisions), anxiety and depression (being able to sleep well ) and confidence (thinking of oneself as worthless). Likert GHQ score: obtained by assigning the value of 3 to the ‘most negative ‘ answer and the value of 0 the ‘most positive’ ones. Score: from 0 (most posittive outcome) to 36. How to measure volunteering?: – – – – Memberships (W1-W5, W7, W9, W11, W13, W15, W17): Q.: Are you currently a (n active) member of any of the kinds of organisations [...]? It is not clear what are the resources (money, time) that individuals contribute to these organisations: what does ‘active’ mean? Variable seems to be capturing a broad measure of social capital better than volunteering. Methodology (III) • How to measure volunteering? (cont’): – Unpaid voluntary work (W6,W8,W10,W12,W14,W16,W18): – Q: We are interested in the things people do in their leisure time, I'm going to read out a list of some leisure activities. Please look at the card and tell me how frequently you do each one... Do unpaid voluntary work. – Main concern: ‘unpaid voluntary work’ questions could be capturing participation in informal volunteering or the existence of family strategies such as caring for a family member that lives inside or outside the household. According to the literature, this kind of volunteering might be detrimental to carers’ mental health (Li&Ferraro, 2005). – However, ‘caring for a family member’ does not seem to driven the responses to this question: • Volunteering among individuals that do care for a household member is similar to volunteering among individuals that do not report providing that kind of support (20.6% and 20.7% respectively). And the difference is not statistically significant. GHQ12: 36 point ‘Likert’ scale Wave 6 Average score: 11.20 Volunteering Average 7 waves Methodology (IV) • Instrument: – Percentage of people in the region that engages in volunteering, per year. • Positively correlated with volunteering • ...but not reason to believe that it is correlated with any underlying factors determining individual mental health. • Other controls:. – Second stage (Mental health): sex, age, age^2, physical health, marital status, financial strain, log annual income. – First stage: instrument and covariates of 2nd stage. inner london outer london r. of south east south west east anglia east midlands west midlands conurbation r. of west midlands greater manchester merseyside r. of north west south yorkshire west yorkshire r. of yorks & humberside tyne & wear r. of north wales scotland northern ireland .1 .2 .3 .4 .1 .2 .3 .4 .1 .2 .3 .4 .1 .2 .3 .4 missing or wild 5 10 15 20 5 10 15 20 5 10 15 wave Graphs by region 20 5 10 15 20 5 10 15 20 Results (I) First-stage within regression Fixed-effects (within) regression Group variable: Individual ID b/se Instrument: Proportion of volunteers in the region, per year 1.009*** (0.030) Controls 2nd stage Yes N F(13,64191) Prob > F 88779 97 0.000 Results (II) Fixed-effects (within) IV and GLS regressions Volunteering Age Age2 Base: living comfortably Finan.sit=doing alright Finan.sit=jus about getting by Finan.sit=finding it quiet difficult Finan.sit=finding it very difficult Number of health problems Base: never married Marital status=married Marital status=separated Marital status=divorced Marital status=widowed Ln(Income) Model1 IV b/se -0.513 (0.377) 0.017 (0.015) -0.000 (0.000) OLS b/se -0.281*** (0.050) 0.016 (0.015) 0.000 (0.000) Model 2 IV b/se -1.324 (2.251) 0.030 (0.026) -0.000 (0.000) OLS b/se -0.379*** (0.100) 0.026 (0.023) -0.000 (0.000) Model 3 IV b/se -1.246 (2.254) 0.027 (0.026) -0.000 (0.000) OLS b/se -0.383*** (0.100) 0.023 (0.023) -0.000 (0.000) 0.434*** (0.047) 1.410*** (0.057) 3.004*** (0.091) 4.879*** (0.136) 0.577*** (0.019) 0.435*** (0.047) 1.408*** (0.057) 3.000*** (0.091) 4.873*** (0.136) 0.577*** (0.019) 0.489*** (0.094) 1.576*** (0.112) 3.231*** (0.177) 5.433*** (0.258) 0.650*** (0.038) 0.495*** (0.092) 1.574*** (0.111) 3.216*** (0.173) 5.429*** (0.257) 0.654*** (0.036) 0.484*** (0.094) 1.575*** (0.112) 3.226*** (0.178) 5.432*** (0.259) 0.648*** (0.037) 0.489*** (0.092) 1.573*** (0.111) 3.212*** (0.173) 5.428*** (0.258) 0.652*** (0.036) 0.300*** (0.109) 0.957*** (0.181) -0.117 (0.156) 1.332*** (0.189) 0.044*** (0.013) 0.302*** (0.108) 0.957*** (0.181) -0.115 (0.156) 1.329*** (0.189) 0.046*** (0.013) 0.271 (0.198) 1.627*** (0.345) -0.123 (0.283) 1.487*** (0.335) 0.024 (0.037) -0.384*** (0.091) 0.269 (0.197) 1.601*** (0.339) -0.110 (0.280) 1.495*** (0.333) 0.035 (0.026) -0.394*** (0.088) 8.439*** (0.337) 8.392*** (0.328) 8.412*** (0.534) 8.358*** (0.516) 0.300 (0.198) 1.639*** (0.345) -0.098 (0.283) 1.524*** (0.335) 0.020 (0.037) -0.388*** (0.091) -0.234** (0.094) 0.056 (0.110) 8.661*** (0.544) 0.298 (0.198) 1.617*** (0.339) -0.085 (0.281) 1.531*** (0.334) 0.030 (0.026) -0.397*** (0.088) -0.238** (0.093) 0.042 (0.104) 8.631*** (0.537) Trust Frequency talksto neighbours (weekly or more=1) Frequency meets people (weekly or more=1) Constant Results (III) • Validity of the instruments: • Weakness: first-stage regression shows a strong (positive) correlation between the instrument and volunteering. • Over identification: We cannot reject the null that the instruments are valid. • Hausman test of endogeneity: There are no systematic differences between IV and OLS estimates. • If endogeneity is ruled out, then OLS provides consistent and efficient estimators, while IV provides consistent but inefficient estimators. • Fixed effects seem to be removing problems of omitted variables and reversed causality. Results (III) • What about self-selection? – A ‘treatment effect’ model – The idea behind the model is to regress two equations simultaneously: • The first is the probability of volunteering controlling by personality traits (Big 5: extraversion, openness, neuroticism, agreeableness and conciousteness). • The second is the outcome regression (mental health) as a function of the treatment variable (volunteering). – To simultaneously estimate the two regressions we have to assume that the error terms are jointly normally distributed. – Estimate ‘treatment effect’ model using Wave 16. – Wald-test tests the null that the correlation between the error terms of the two equations is biased towards zero. With a chi2(1)= 119.26, p-value=0.000, we can conclude that there is selection bias in our model. – However, once the model have been corrected, volunteering is still positive and significantly correlated with mental health. E(Mental Health ¦ volunteering=1)= 11.25 E(Mental Health ¦ volunteering=0)= 11.53 Results (IV) • What are the mechanisms through which volunteering generates a positive effect on mental health? • Hypothesis: Volunteering as a buffer mechanism to deal with potentially negative personal episodes/situations: – Retirement – Financial strain – Termination of marriage Models Subsample: Volunteers b/se Panel A: Retirement Dummy (yes=1) Panel B: Financial strain Dummy (finding it quiet or very different) Panel C: Termination of a marriage Dummy (separated, divorced, widowed) Mental health Subsample: Non Volunteers b/se -1.206*** (0.199) -0.517*** (0.108) 2.186*** (0.203) 2.508*** (0.084) -0.329 (0.271) 0.320*** (0.108) Conclusions • Fixed effect models seem to be successfully dealing with issues of reverse causality and omitted variables. • Self-selection problem is not tackle with OLS estimations, however: – ‘Treatment effects’ model provide similar OLS estimators once estimation have been corrected by selection bias. • Volunteering has a positive effect on mental health. • Volunteering seems to be playing a role on alleviating potential negative effects of personal episodes/situations: – It increases well-being among retirees: • Hypothesis: Helps volunteers to find a sense of purpose after their working life. – Decreases the negative effects of being on financial strain: • Hypothesis: Helps volunteers to see things in perspective/Helps volunteers to achieve personal satisfaction that is not related to monetary rewards. – Deludes the negative effect of being separated, divorced or widowed (as opposed to being married). • Hypothesis: Helps volunteers to see things in perspective • Further research: – Test this results with other measures of well-being such as life satisfaction. – More in-depth analysis needed to understand how those mechanism work in the field work