Does volunteer work pay off in the labor market?

Focusing on the investment motive for volunteer work, this paper examines whether volunteer work has an economic payoff upon the labor market in France. Using a switching regression model with endogenous switching, we find that in the public sector volunteers receive a positive wage premium that does not influence their involvement, while the premium is negative in the private sector. We also find little evidence of the presence of alternative types of returns on the labor market, such as employment mobility or entry into the labor market. Our findings are more consistent with a consumption motive and we suggest that volunteering is carried out with a relational purpose.