KWDI Korean Women’s Development Institute

Since the 1990’s, Korea has witnessed a dramatic increase in volunteer activities. In 2008, the participation rate of women in volunteer work was 19.9% with an average of 1.72 hours volunteered per person on a weekly basis. This can be interpreted as 20% of the population is volunteers, 74.1% of which are women. Despite the fact that volunteer work has an enormous contribution to improving one’s life quality, mere efforts have been observed in measuring its economic values.

This study empirically analyzes the economic values of female volunteer work and the influence of tax deduction on female participation in volunteering and volunteer time.

The estimation of the economic values of volunteer activities produced the result that the volunteer population aged 20 years and older performed volunteer service valued at 3,495 billion won, among which men’s contribution amounted to 2,392 billion won, 1,293 billion higher than women’s 1,103 billion won. In fact, women participated more and invested longer time in volunteering than men, but their volunteer work was valued less than that of men because their per capita wage was set lower than men. The volunteer work’s economic values accounts for 0.35% of GDP in 2008 and 2.1% of the government budget (174 trillion won) for the year. In addition, it represents 21% of the social welfare budget, which means that 21% of public services are provided by volunteer activities of the private sector.

Under the policy scenario based on policy discussions over expanding tax benefits in the taxation law, assumptions were drawn on how the tax deductions will lead to increasing volunteer time. When tax benefits are given, 87.7% of women (887 women) spend more time in volunteer work, while 12.3% (124 women) rather reduce their volunteer time. On the other hand, in the case of male volunteers, 80.0% of them (782 men) devote more time in volunteer activities, while 20.0% (96 men) cut their time. This can be attributed to the fact that the majority of women have high income flexibility in relation to volunteer time.

Accordingly, relevant policies should develop in a way that the values of female volunteer activities are measured and acknowledged and serve as a new growth engine for society, so that female volunteer activities continue to grow and become a primary channel of supplying public services.

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