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2014•RePEc: Research Papers in EconomicsOpen access

VOLUNTEERING AND LIFE SATISFACTION : AN INVESTIGATION OF ENDOGENEITY

Chiang-Ming Chen, Chia‐Yu Yeh, Ching‐Hsing Chang

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Abstract

Based upon the results of a national survey conducted in Taiwan, this study investigates the effects of volunteering on life satisfaction. We used a univariate ordered probit model and a simultaneous bivariate ordered probit model to compare the potential endogeneity between volunteering and life satisfaction. An exogenous military service variable was included in the bivariate model to correct the endogeneity of volunteering on life satisfaction. The results of the univariate ordered probit model suggest that volunteering has no effecton life satisfaction. However, the results from the simultaneous bivariate ordered probit model indicate volunteering has a significantposit ive effect on life satisfaction. The failure to account for endogeneity appears to underestimate the effect of volunteering on life satisfaction.

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What this paper is about

Based upon the results of a national survey conducted in Taiwan, this study investigates the effects of volunteering on life satisfaction. We used a univariate ordered probit model and a simultaneous bivariate ordered probit model to compare the potential endogeneity between volunteering and life satisfaction. An exogenous military service variable was included in the bivariate model to correct the endogeneity of volunteering on life satisfaction. The results of the univariate ordered probit model suggest that volunteering has no effecton life satisfaction. However, the results from the simultaneous bivariate ordered probit model indicate volunteering has a significantposit ive effect on life satisfaction. The failure to account for endogeneity appears to underestimate the effect of volunteering on life satisfaction.

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Available abstract

Based upon the results of a national survey conducted in Taiwan, this study investigates the effects of volunteering on life satisfaction. We used a univariate ordered probit model and a simultaneous bivariate ordered probit model to compare the potential endogeneity between volunteering and life satisfaction. An exogenous military service variable was included in the bivariate model to correct the endogeneity of volunteering on life satisfaction. The results of the univariate ordered probit model suggest that volunteering has no effecton life satisfaction. However, the results from the simultaneous bivariate ordered probit model indicate volunteering has a significantposit ive effect on life satisfaction. The failure to account for endogeneity appears to underestimate the effect of volunteering on life satisfaction.

Key concepts: Endogeneity, Ordered probit, Multivariate probit model, Bivariate analysis, Univariate, Probit model, Life satisfaction, Econometrics

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