An empirical analysis of the effect of volunteer labor on public library employment

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Abstract
This study is an empirical investigation of the effect of library volunteers on public library demand for paid workers. Unlike previous studies, it estimates the impacts on different types of paid labor. The main purpose is to test whether volunteer labor replaced or complemented paid employees. A translog cost function is used to derive cost shares and elasticities of substitution for Pennsylvania public libraries. Cross‐elasticity estimates of substitution and input demand suggest a strong complementary relation between volunteers and professional workers. Most of the other Allen cross elasticities were not statistically significant. None of the estimates indicate that paid labor was being replaced by volunteers. Copyright © 2007 John Wiley & Sons, Ltd.

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