Study Purpose Anecdotally, we know that volunteers1 generate significant value through their contributions to OAA programs and SHIPs. However, to date, little or no information is available about the actual or estimated economic value that volunteers contribute to these programs. To lay the foundation for addressing this gap, ACL funded this initial study to estimate the economic value of volunteers to OAA programs and SHIPs using available data. This study focused on two main levels of analysis: ? the national ACL program level based on OAA Title III, OAA Title VII LTCOP, and SHIP aggregate data for all U.S. states and territories, and ? the local program level based on data obtained from OAA and SHIP grantees (i.e., AAAs and local service providers). This brief summarizes key findings from analyses conducted at the national ACL program level. Results from analyses conducted at the local program level for select programs are provided in the Supplement. Methodology Data Sources Program Performance Data OAA and SHIP program performance data were obtained to provide context about the programs and their reach. Performance data for the OAA Title III2 and OAA Title VII LTCOP3 were exported from ACL's AGing, Independence, and Disability (AGID) Program Data Portal for FY 2019. 4 Performance data for the SHIP5 were provided by ACL program staff for grant year (GY) 2019. 6 Volunteer Data Available annual data for the number of volunteers, volunteer hours, and full-time equivalent (FTE) counts for volunteers and paid staff, for OAA Title III and OAA Title VII LTCOP were exported from AGID for FYs 2015-2019. 7 National aggregate data for the number of volunteers, volunteer hours, and FTE counts for volunteers and paid staff for the SHIPs were provided by ACL program staff for GY 2019. 1 For the purpose of this study, volunteer work refers to unpaid noncompulsory work?that is, time individuals give without pay to activities performed through an organization outside their own household (International Labour Office, 2011). 2 Number of service recipients and number of service unit 3 Number or nursing homes, board and care homes, number of complaints, and number of consultations 4 FY 2019 is October 1, 2018 - September 30/2019. 5 Number of individuals reached 6 SHIPs report data by grant year, which includes the period from April through March of the following year: GY 2019 is April 1, 2019 - March 31, 2020. 7 For OAA Title III, national and state level annual State Program Report data include volunteers and paid staffing full-time equivalent (FTE) counts at the AAAs. Data for head counts of volunteers and staff are not collected, For OAA Title VII LTCOP, national and state level National Ombudsman Reporting System data include number of volunteers and paid staff, FTE counts, and number of v

Analytic Methods To estimate the economic value of volunteers for these programs, we applied a two-stage analytic approach. The first stage included an analysis of national aggregate data to estimate the average number of hours per month that a volunteer contributes to each program: OAA Title III program, OAA Title VIl LTCOP, and SHIP. Due to data gaps (e.g., Title III does not collect data about the number of volunteers) and differences in reporting across the programs, each program-specific data source was assessed separately. To the extent feasible, based on available data, we then examined the share of the total labor effort (volunteers and paid staff) that was performed by volunteers for each program. Because the vast majority of volunteers in these programs are likely to work part-time, the unit of analysis was total hours worked or number of FTEs rather than numbers of volunteers. In the second stage of analysis, we used results from stage one to estimate the economic value of volunteer labor for the programs. This analysis applied a replacement cost approach (based on observed market proxies of wages) to develop the estimates. Conceptually, this approach involves the following hypothetical question: If there were no volunteers today, how many paid staff members would need to be hired (or paid staff hours diverted) to replace the work activities performed by volunteers, and what would their wage be to do the same work as volunteers? Since finding the actual wage of paid workers was not feasible given the scope and design of the study, we applied a generalist wage assumption ($27.20) based on existing studies in the literature. This generalist wage is a 2019 national estimate of the value of volunteer time established by Independent Sector (Independent Sector, 2020). It is based on the annual average hourly earnings8 (not seasonally adjusted) for all production and nonsupervisory workers on private nonfarm payrolls plus a 15.7% adjustment to account for the value of fringe benefits (Independent Sector, 2019). The annual earnings estimate was obtained from the Current Employment Statistics database which is maintained by the Bureau of Labor Statistics (U.S. Bureau of Labor Statistics, 2021). Study Results OAA Title III Program Reach In FY 2019, OAA Title III funded 892 AAAs and 10,185 senior centers that coordinated and offered services to older adults. In addition, the program provided support to more than 202,000 caregivers serving older adults. More than 10.8 million older persons received OAA Title III services?including almost 150 million home-delivered meals; more than 73 million congregate meals; and 20 million rides 8 The Independent Sector value for our economic valuation was used rather than federal minimum wage ($7.25), which is much lower, as it is a more appropriate wage assumption. According to efficiency wage theory (Campbell, 1993; Katz, 1986), there are productivity and efficiency benefits to paying workers above the market wage. Based on labor economic models, it has been shown that higher wages improve workers' productivity and deter workers from leaving, thereby reducing turnover rates. At the minimum wage level, workers may be less committed to their jobs and more likely to leave. Essentially, if a company pays market price for wages, then the cost to each worker of losing their job is essentially the cost of finding a new job. If the company pays its workers more than market price, however, then the cost to each worker of losing their job will be substantially higher, so turnover will be lower.

It seems you've provided a passage discussing a study's methodology and results regarding the economic valuation of volunteer labor for CAA Title lll programs. The study employs a replacement cost approach to estimate the economic value of volunteer labor, essentially determining how many paid staff members would need to be hired to replace the work performed by volunteers and at what wage. Here are the key points and findings from the passage: 1. Methodology: * The study uses a replacement cost approach based on observed market proxies of wages to estimate the economic value of volunteer labor. * It applies a generalist wage assumption of $27.20, which is based on existing studies in the literature and is established by Independent Sector. 2. Study Results: * In Fiscal Year (FY) 2019, OAA Title lll funded 892 Area Agencies on Aging (AAAs) and 10,185 senior centers, which provided services to older adults. * The program also supported over 202,000 caregivers serving older adults. * QOver 10.8 million older persons received CAA Title lll services, including nearly 150 million home-delivered meals, over 73 million congregate meals, and 20 million rides. 3. Justification for Wage Assumption: * The study justifies using the Independent Sector value for economic valuation rather than the federal minimum wage ($7.25) based on efficiency wage theory. * Efficiency wage theory suggests that paying workers above the market wage can lead to productivity and efficiency benefits, as well as reduced turnover rates. * Higher wages may improve workers' productivity and commitment to their jobs, thereby reducing turnover. In summary, the study provides insights into the economic value of volunteer labor in OAA Title 11l programs, using a replacement cost approach and justifying the wage assumption based on efficiency wage theory