A Framework for Considering the 

Social Value of Postal Services 

Final Report 

February 2, 2010 

Prepared By: 

Nancy Pindus, Principal Investigator 

Rachel Brash 

Kaitlin Franks 

Elaine Morley 

Prepared for: 

Postal Regulatory Commission 

Washington, DC 

The Urban Institute

2100 M Street, NW ● Washington, DC 20037 

The nonpartisan Urban Institute publishes studies, reports, and books on timely topics 

worthy of public consideration. The views expressed are those of the authors and should not be 

attributed to the Urban Institute, its trustees, or its funders
 

 A Framework for Considering the Social Value of Postal Services 

i 

TABLE OF CONTENTS 

ACKNOWLEDGMENTS ............................................................................................................... ii

EXECUTIVE SUMMARY ............................................................................................................. iii

I. INTRODUCTION ......................................................................................................................1

II. BACKGROUND .......................................................................................................................2

III. TYPES OF BENEFITS AND CLASSIFICATION FRAMEWORK............................................4

IV. MEASUREMENT AND METHODS .......................................................................................23

V. NEXT STEPS ........................................................................................................................30

APPENDIX A: List of Interviews and Contacts ...........................................................................37

APPENDIX B: Bibliography.........................................................................................................40
 

 A Framework for Considering the Social Value of Postal Services 

ii 

ACKNOWLEDGMENTS 

This report would not have been possible without the insights provided by the individuals 

interviewed for this study, listed in Appendix A, who gave their time generously. 

We also thank Michael Ravnitzky and Shoshana Grove of the Postal Regulatory 

Commission for their guidance and thoughtful input. Diane Monaco, Richard Oliver, Kristine 

Debry, and William Miller of the Postal Regulatory Commission and Harry Hatry of the Urban 

Institute offered important comments on an initial draft of the report. 
 

 A Framework for Considering the Social Value of Postal Services 

iii 

EXECUTIVE SUMMARY 

The objective of this study, commissioned by the Postal Regulatory Commission (PRC) 

and carried out by the Urban Institute,1

 was to identify the array of benefits provided by the 

United States Postal Service (USPS)--through its mail service and post offices--that contribute 

to the social value of the post. This study also identifies possible metrics and methods for 

estimating the value of these benefits and provides an organizing scheme for detailed analysis 

and quantification in the future. Social value is created when goods or services result in 

improvements in the lives of individuals or the general society. In this study, we refer to the 

elements that contribute to social value as “social benefits.” Social benefits are difficult to 

quantify but contribute to a general sense of individual or community well-being, and thus are 

valuable. We provide a framework that categorizes benefits, beneficiaries, and measures. 

Considering the social value of the post, while challenging, is conceptually possible and 

consistent with other work on social valuation.

This project takes a broad scan of the many benefits of postal services and post offices, 

considering the perspectives of individual consumers, businesses, and nonprofit organizations. 

The Urban Institute reviewed literature on postal history, welfare economics, and community 

development. We conducted interviews with PRC Commissioners and staff, USPS officials, and 

leaders of organizations including those representing postmasters, letter carriers, publishers, 

advertisers, and nonprofit organizations. Also interviewed were economists and researchers 

specializing in regulatory economics, postal history and operations, and community and 

economic development. 

Key Findings 

The dozens of benefits identified fall into eight broad categories: 

(1) consumer benefits, including the establishment of a competitive baseline for other 

package delivery services and access to goods and services for the elderly, immigrants, and 

those with low incomes; 

(2) business benefits, including receipt of supplies in rural or remote locations, support of 

catalog businesses, and generation of economic activity at shops and offices near post offices; 

 (3) safety and security, including the role of mail carriers serving as a form of 

neighborhood watch, the Postal Service’s role in reestablishing contact with populations after 

natural disasters, and in civil defense and bio-medical emergency response; 

 

1

 The Urban Institute is a nonprofit, nonpartisan research organization dedicated to fostering sound public 

policy and effective government. Founded in 1968 to provide independent analysis of the problems facing America's 

cities and their residents, the Urban Institute now conducts policy research related to all 50 states and abroad in over 

28 countries, in communities of all sizes and settings, analyzing policies, evaluating programs, and informing 

community development in order to improve social, civic, and economic well-being. 
 

 A Framework for Considering the Social Value of Postal Services 

iv 

(4) environmental benefits, including economies of scale and scope to reduce carbon 

emissions and fuel usage; providing an opportunity for first and last mile delivery on behalf of 

other companies, thereby reducing neighborhood traffic; facilitating online shopping and 

merchandise returns; and providing a means of recycling of electronic items such as cell 

phones; 

(5) facilitating delivery of other federal state and local government services, including 

voting by mail, census, voting and voter registration, and applying for absentee ballots and 

passports; 

(6) information exchange, including the circulation of journals, newspapers, newsletters, 

and political magazines; 

(7) social linkages such as the exchange of personal correspondence including greeting, 

condolence and congratulatory cards, thank you notes and other ways of connecting people, as 

well as the relationship communities have with their postmaster and post office staff and mail 

carriers, particularly as a point of social contact for isolated populations, and 

(8) civic pride, patriotism, and community identity. 

 

Conclusions 

We recommend additional research to quantify the social and economic value of the 

social benefits we have identified. This research should include: 

 Empirical validation using representative survey samples; 

 Benefit valuation by particular subgroups and constituencies; 

 Analysis of costs versus benefits for selected social benefits and the implications 

of alternative approaches to service delivery, or the counterfactual in which the 

Postal Service no longer provides these benefits. 

 Assessing the suitability and accuracy of methodologies for quantifying social 

value, and 

 Segregation of those governmental services best provided by the Postal Service 

as opposed to those available from another provider. 

The PRC should develop a detailed research plan that frames the questions of interest 

and the comparisons to be made. Second, the PRC should consider the following options for 

future research: 

 Conduct descriptive analyses using existing data; 

 Use these analyses to develop hypotheses and conduct empirical analysis; 

 Develop scenarios and conduct cost effectiveness assessments; 

 Design and conduct surveys of consumers, nonprofit organizations, and 

businesses; 
 

 A Framework for Considering the Social Value of Postal Services 

v 

 Use survey data to conduct willingness-to-pay analysis; and 

 Design and implement case study approaches for selected issues such as 

disaster response or post office closure. 

Regardless of the method, future research into social benefits of the Postal Service 

should compare the current system to the alternatives, i.e. eliminating, reducing or privatizing 

postal services, providing digital only services, and/or providing postal services through 

alternate providers. 
 

 A Framework for Considering the Social Value of Postal Services 

1 

A FRAMEWORK FOR CONSIDERING THE SOCIAL VALUE OF 

POSTAL SERVICES 

I. INTRODUCTION 

Mail use in this country has changed dramatically with increased electronic 

communications, bill paying, and banking. Steep declines in mail volume and revenue challenge 

the financial condition of the U.S. Postal Service (USPS 2009f). Yet, the Postal Service’s 

Universal Service Obligation requires the provision of postal services that meet standards for 

geographic scope, range of products, access to services and facilities, delivery frequency, 

affordable and uniform pricing, service quality, and security of the mail (PRC 2008b). While a 

universally available place-based paper mail service could seem to some like an anachronism in 

the electronic age, there are many social benefits to universal postal service for individuals, 

communities, and the nation. 

The Postal Regulatory Commission (PRC), the successor to the Postal Rate 

Commission, is an independent agency that exercises regulatory oversight over the Postal 

Service, which was created by the Postal Reorganization Act of 1970. The Postal Accountability 

and Enhancement Act (PAEA) enacted on December 20, 2006, significantly strengthened the 

Commission’s authority and expands its oversight responsibilities to include annual 

determination of Postal Service compliance with applicable laws, review of the Universal 

Service requirement, and assurance of transparency through periodic reports. In the context of 

these responsibilities, the PRC contracted with the Urban Institute1

 to assist in outlining the 

various issues and metrics necessary to measure the social value of the post and the universal 

service obligation as well as the various non-postal functions performed by the Postal Service. 

This project is a first step in documenting a comprehensive matrix of social benefits and 

providing an organizing scheme that will facilitate more detailed analysis and quantification of 

these benefits in the future. 

Taking a broad view of potential benefits, this project included a scan of key information 

sources and interviews with knowledgeable informants, including those specifically focused on 

 

1

 The Urban Institute is a nonprofit, nonpartisan research organization dedicated to fostering sound public 

policy and effective government. Founded in 1968 to provide independent analysis of the problems facing America's 

cities and their residents, the Urban Institute now conducts policy research related to all 50 states and abroad in over 

28 countries, in communities of all sizes and settings, analyzing policies, evaluating programs, and informing 

community development in order to improve social, civic, and economic well-being. 
 

 A Framework for Considering the Social Value of Postal Services 

2 

postal services, as well as potentially applicable research on community and economic 

development, community assets, and measurement of social value. This report uses that 

information to present a comprehensive list of benefits and a framework for identifying, 

categorizing, and documenting those benefits. The next section of this report presents additional 

background for the study and explains the concept of social value as applied in this study. 

Section III presents a series of matrices illustrating the benefits identified and a classification 

framework. Section IV provides additional information on measurement of social value, and 

Section V suggests steps for further research. Appendices include a list of individuals 

interviewed for this study and a bibliography. 

II. BACKGROUND 

An extensive literature exists on the history of the postal system in the United States, 

including a recent report commissioned by the Postal Regulatory Commission (John 2008; PRC 

2008b) and a report prepared by the United States Postal Service (USPS 2007b). This section 

does not review that literature, but presents key concepts and context for understanding the 

views presented by key informants and the range of social benefits identified. 

Throughout its history, the United States Postal Service (USPS) has responded to a civic 

as well as an economic mandate, subject to legislative and regulatory interpretation reflecting 

changing times and circumstances. The civic mandate, or public service aspect of the postal 

service, addresses the importance of access to information for preserving democracy, fostering 

commerce, and promoting the general welfare. For example, when the postal service began in 

1775, a healthy postal network facilitated communication among army commanders and the first 

elected representatives, and representatives and their constituents. Newspapers sent through 

the mail enabled Americans to participate in political life (USPS 2007b). 

Although use of the phrase “universal service” in connection with the postal service is 

quite recent, the broad concepts of openness and inclusiveness with respect to the circulation of 

information can be traced back through most of the history of the postal system (John 2008; 

PRC 2008b). Information on public affairs was viewed as necessary to preservation of the 

union. Later, lawmakers recognized the value to commerce of broad circulation of certain types 

of information, such as merchants’ correspondence. In the mid-1800s the postal system’s 

coverage expanded when postal rates for individual letters were greatly reduced. However, no 

definition of the specific activities included in the universal service obligation exists. The PRC’s 

report (PRC 2008b) on the universal service obligation notes that the universal service 

obligation in the United States is not specific and “throughout its history the Postal Service has 

been expected to use its flexibility to meet the needs and expectations of the Nation while 

balancing the delivery of service against budgetary constraints” (PRC 2008b). 

The postal monopoly refers to certain privileges or exclusive domains that have 

historically been accorded to the postal service through legal and regulatory provisions. 
 

 A Framework for Considering the Social Value of Postal Services 

3 

Generally, the postal monopoly addresses first class mail and mailboxes. The rationale for the 

postal monopoly is broad, and includes the need to assure sufficient revenue for universal 

service as well as security of the mail. Debates about the need for the postal monopoly and its 

appropriate limitations and implementation reflect the tension over the postal service – is it a 

public service or a big business? The literature review and interviews conducted for this study 

indicate that the postal service has elements of both. 

The United States Postal Service is an independent agency of the executive branch of 

the United States government. USPS is a self-funding agency operating independent of 

taxpayer support. The scale of the postal service compares to the largest Fortune 500 

companies (USPS 2009d). In 2009, USPS had over 623,000 career employees, handled over 

177 million pieces of mail, and served over 923,000 new delivery points (USPS 2009f). USPS 

sells mailing and shipping services through 36,000 post offices, stations, branches, and contract 

postal units as well as through its web site and a network of consignees. Mail is delivered to 

more than 150 million city, rural, post office box, and highway delivery points, using the largest 

civilian fleet in the world (USPS 2009c). The postal system serves individual and commercial 

customers, offering two categories of services: market-dominant and competitive. Marketdominant services (also called mailing services), which include first class mail, standard mail, 

periodicals, and packages, are subject to regulated price caps. Competitive services (also called 

Shipping Services) include priority mail, express mail and bulk parcel post, and are not subject 

to price caps but compete in the market with other service providers. 

For the purpose of this study, we focus on the social value of post offices and postal 

services. Social value is created when goods or services result in improvements in the lives of 

individuals or the general society. Economic value, on the other hand, is created when goods 

and services result in improvements in market value. In this study, we refer to the elements that 

contribute to social value as "social benefits." These are discrete activities that sustain or 

improve the well-being of an individual, group of individuals, or a community. These social 

benefits are distinct from social benefits in economic terms, where social benefits would refer to 

the total amount of benefit to society of the goods and services produced by the post office and 

postal services (Emerson, et al. 2001). There are some benefits which provide both economic 

and social value that we have chosen to include in this study. For example, free shipping of 

reading material for the blind is an economic benefit; however the result of this benefit is also an 

improvement in the lives of blind individuals who might not otherwise be able to afford or obtain 

such reading material. 

Although social value is much more difficult to quantify than economic value, there are 

many researchers who are developing ways in which one could calculate the social value of a 

good or service; several of these studies are discussed in the “Measurement and Methods” 

section of this report. Identifying and categorizing social benefits of the postal services is a first, 

but necessary, step in social value measurement. 
 

 A Framework for Considering the Social Value of Postal Services 

4 

III. TYPES OF BENEFITS AND CLASSIFICATION FRAMEWORK 

This section documents the benefits identified and described in our interviews and in the 

literature. Interview respondents included PRC commissioners and staff, USPS officials, leaders 

of organizations representing postmasters, letter carriers, publishers, advertisers, nonprofit 

organizations, and other organizations whose operations use the postal service extensively. In 

addition we interviewed researchers with a range of interests and specialties, including postal 

history, postal operations, regulatory economics, and community and economic development. 

Interview respondents were asked about benefits of postal services and the physical presence 

of a post office in a community. They were asked to consider particular benefits or differences 

for urban, rural, and suburban settings and for subpopulations, especially vulnerable 

populations such as the elderly, immigrants, and those with low incomes. 

The interviews did not address the cost of services to the post office, the case for public 

funding or for privatization, or comparison of the value of postal services with other services. 

Although some respondents offered their opinions on these issues, these issues are beyond the 

scope of this report. 

The literature and web postings reviewed included this same broad range of topics, with 

greater emphasis on potential metrics for measuring social benefits and the role of post offices 

and other public buildings in community engagement and downtown revitalization. Extending 

our review to post offices as community assets stems from the premise that post offices share 

some characteristics with other community institutions, and studies of such institutions may offer 

insights for conceptualizing and documenting social value. 

The benefits identified are clustered around the following eight broad categories: 

• Consumer 

• Business 

• Safety and Security 

• Environmental 

• Delivery of Other Government Services 

• Information Exchange 

• Social Linkage 

• Civic Pride and Patriotism 

The tables in this section provide descriptions of the benefits included in each category. 

While not all of the benefits listed are considered “social benefits” as such, they were frequently 

mentioned by respondents as having benefits beyond mail and package delivery and being of 

social value. The tables also indicate whether a particular benefit is associated with postal 
 

 A Framework for Considering the Social Value of Postal Services 

5 

service, the presence of a post office, or both. Suggested metrics, some already available and 

in use, are included as well, and are discussed further in Section IV. 

The following sections present an overview of each table and selected examples to 

further illustrate particular benefits. 

Consumer Benefits (Table 1) 

Consumer benefits identified include benefits generally available to all individual postal 

customers as well as benefits established for particular groups, such as the blind and disabled, 

or members of the military. Table 1 includes additional columns to indicate benefits that 

especially benefit rural or vulnerable populations. Consumer benefits available to all include 

access to products and information about services regardless of where one lives; access to 

secure mail boxes; competitive prices for other delivery services; a uniform, low price for First 

Class Mail; and change of address services. Some postal benefits are particularly important for 

those living in rural areas, who may not have ready access to a wide range of consumer goods 

close to home. Rural mail carriers bring the services of post offices, such as selling stamps and 

money orders, to the homes of rural residents. While on-line shopping has increased, some 

rural residents do not live in areas with broadband access and rely on catalogs delivered by 

mail. Rural residents who can shop on-line still depend on the postal service for delivery and 

package return. 

Postal services include a number of benefits of particular value to vulnerable population 

groups. Consumers who are elderly or disabled benefit especially from mail delivery of goods 

ordered over the telephone or Internet, medications and medical supplies, and free reading 

matter (for those who qualify). In 2008, there were 238 million prescriptions filled by mail order 

in the United States, accounting for 6.7 percent of all prescriptions (National Association of 

Chain Drug Stores 2009). The elderly and disabled also benefit from post office buildings that 

are near to their homes. One respondent contacted by the Urban Institute noted that those who 

live in low or moderate income neighborhoods may not be technologically confident enough to 

access USPS services online and need to physically go to a post office to buy stamps or send 

parcels. Complex transactions, such as sending packages or money orders to family members 

overseas, may best be handled in person. Residents who do not have cars benefit from an 

accessible post office. Were the post office to be closed or moved, elderly or disabled residents 

would have difficulty accessing postal services because they would need to make a long or 

complicated journey by public transportation to reach the post office. A historic preservationist 

contacted by the Urban Institute offered the following account of a local resident who places 

great importance of the proximity of the post office: 

I just made a quick roundtrip to our downtown post office and was extremely 

grateful for the short time it took me to travel there, complete my business, and 

return home. You see, I am a full-time caregiver for my 95-year-old mother. 

Rarely do I leave her alone, as her mind and body are failing. If I do run a short 

errand, I worry the entire time I am gone. So, it took me exactly eight minutes to 
Table 1 

Benefits of the Postal Service and Post Offices: Consumer Benefits 

Description of Benefit 

Postal Service Post Office Rural/Isolated Vulnerable 

Metric 

General Benefits 

Postal service prices establish a competitive baseline for other delivery 

services, constraining unfettered pricing. 

√  USPS rates and rate 

increases over time 

 Other providers’ rate 

and rate increases 

over time

Anyone--including isolated or disadvantaged consumers--can access 

products from anywhere. Some areas have limited access to broadband 

or it is unreliable, and those populations are dependent on mail. 

√ √  Data on broadband 

access, home 

computer use 

Housebound people, such as the elderly or disabled, can get needed 

goods delivered. They also receive information through the mail on ways 

to obtain goods they cannot get through the mail, e.g., grocery stores or 

dry cleaners that deliver. Postal service also facilitates return of 

purchased goods. 

√ √  Demographic data on 

population affected 

Blue boxes provide a way to securely send mail close to home. √  Number and spatial 

distribution of mail 

boxes 

Postal service is obligated to provide accommodations for disabled. 

Postal service provides services without discrimination. 

√ √

United Parcel Service has surcharges for customers living in certain 

areas. USPS does not have these charges. 

√ √  UPS and other 

provider surcharge 

data compared to 

USPS prices 

USPS handles change of addresses well. Private shippers are unable to 

forward parcels to new address because they don’t have the information. 

√  Volume of address 

changes 

 Time from request to 

implementation of 

address change 

USPS delivers medication and other health-related products through the 

mail. This delivery is of particular importance to isolated areas where 

residents may be many miles from town and may lack their own 

transportation. 

√ √ √  Estimated dollars 

saved by using mail 

order prescriptions. 

 Estimated number of 

mail order 

prescriptions

Mail delivery is less expensive than a computer and internet connection. √  Comparative price 

data 

Advertising, including through the mail, helps lower prices. Research 

shows that when a market is opened to advertising, prices go down. 

√  Data on effect of 

advertising on prices 

Shopping by catalog allows consumers to compare prices. √  Dollars saved by 

comparing prices 

Receiving goods by mail at home saves time and money on gas. √

6 
Description of Benefit 

Postal Service Post Office Rural/Isolated Vulnerable 

Metric 

Mail provides the opportunity to support charitable organizations, a 

source of satisfaction for some individuals. 

√  Volume and percent 

of donations 

received by mail 

compared to on-line 

donations 

USPS employees provide information about postal products and services. √

Mail delivered to P.O. boxes is almost always in by 11:00 am or 11:15 

a.m., much earlier than home delivery. 

√  Percent of P.O. Box 

renters that find this 

important 

Rural carriers provide the same services as the post office. They issue 

money orders, sell stamps, etc. 

√

Travelers and the homeless can use general delivery to receive mail. √ √  Number of general 

delivery users 

Mail such as catalogs and magazines have entertainment value. √

Individuals can receive and pay bills by mail. This is of particular 

importance to those not using Internet, such as the elderly, those without 

bank accounts, or those who want to receive checks and bills in hard 

copy. Individuals cannot do banking on-line if they do not have a regular 

bank account. 

√ √  Percent of population 

paying bills by mail 

compared to those 

paying bills on-line 

People receive checks through the mail and can mail deposits to banks. √  Number of persons 

that use the mail for 

banking 

Special Services or Prices 

Individuals can receive and cash money orders (both domestic and 

international). Low-income and immigrant populations are less likely to 

use the regular banking system. ID requirements for cashing money 

orders are less stringent than for other types of checks. 

√ √  Number of money 

orders purchased 

and cashed 

Individuals can obtain special services, certified mail, registered mail, 

delivery confirmation, signature confirmation, and insurance (USPS 

2008b). 

√ √  Number of persons 

that use each of 

these services 

USPS allows the blind and disabled to send and receive free reading 

matter. 

√ √  Number of users of 

free reading matter 

program 

The price of Military Mail postage is the same as domestic postage. A 

First-Class® Mail stamp will also deliver a letter to a U.S. military service 

member located halfway around the world. 

√  Volume of military 

mail 

Source: Unless otherwise cited, the descriptions of benefits were obtained through interviews conducted by 

the Urban Institute.

Note: For this table, vulnerable populations include elderly, blind, disabled, low-income, and immigrants.

7 
 

 A Framework for Considering the Social Value of Postal Services 

8 

run this errand. If the post office were not centrally located in our 

downtown, I am uncertain when I would have been able to get there. I 

almost always see someone there that I know which means I have to 

“look decent” when I go, but given my homebound status I truly enjoy 

talking with people while waiting in line or visiting with the employees, 

some of whom have been there for most of the 24 years I have been 

going there. 

In addition to providing accessible postal services for vulnerable populations, post offices also 

provide needed services for those without bank accounts. Individuals can purchase money 

orders from USPS and cash money orders at post offices. A recent national survey of financial 

capability (FINRA 2009) found that 12 percent of the U.S. population did not have a savings or 

checking account, but that 31 percent of low-income households are unbanked. The 

feescharged for purchasing and cashing postal money orders are lower than commercial check 

cashing services, and the identification requirements are less stringent than for cashing 

personal checks. In 2008 USPS issued an average of 597,000 money orders daily (USPS 

2009d). 

The postal service also provides a point of contact for travelers and the homeless, who 

can use general delivery to receive mail at post offices. 

Business Benefits (Table 2) 

The longest list of benefits is business benefits, which accrue to small businesses, large 

businesses, nonprofit organizations, and communities. Although some of these benefits are not 

strictly social benefits, they do improve the lives of individuals and society. Many of these 

benefits stem from the extensive network set up by the postal service and its special discounted 

prices, both of which allow businesses to connect to consumers they would otherwise not be 

able to reach. It also allows for the maintenance of a wide variety of businesses in diverse 

locales. 

Small and home-based businesses are able to obtain needed supplies, send products to 

customers all over the world, and use standard mail for bulk advertising. This promotes 

business in rural and remote areas and enables businesses to locate in areas where rent and 

labor costs are lower. 

One representative of the National Rural Letter Carriers Association noted that an 

elderly woman on his route operated a doll business out of her home. She is able to 

maintain her business because the mail carrier comes by every day to pick up and 

deliver packages. 

With regard to post offices, home-based and other small businesses use post office 

boxes for business mailing addresses because mail arrives at the same time each day and is 

stored securely. 
Table 2 

Benefits of the Postal Service and Post Offices: Business Benefits 

Description of Benefit 

Postal Service Post Office 

Metric 

Small Businesses 

Postal service helps small- and home-based businesses exist: 

- Products can be picked up and sent all over the world. 

- Businesses can receive supplies even if they are located in rural or 

remote locations. 

- Parcel Select and Parcel Return Service provide commercial customers 

with an economical means of shipping packages (USPS 2009d)--private 

parcel services are more expensive than the USPS. 

- Some small businesses might not be able to afford higher mailing costs 

and might go out of business without USPS.

√  Comparison of USPS 

parcel service price and 

UPS/FedEx parcel 

service price 

 Number of jobs added at 

small businesses 

UPS and FedEx do not go to as many places or as often for small shippers. 

Small and large businesses can locate anywhere. (For example, catalog 

businesses are often in rural areas.) 

√  Number of small 

businesses located in 

areas not served by UPS 

or FedEx 

 Number of small 

businesses charged 

premium for their location 

Small businesses do a lot of mail advertising (e.g., coupon mailers) to 

generate customers. Small businesses use postal service for geographic 

targeting. 

√  Volume of mail 

advertising 

 Redemption of mailed 

coupons 

Catalog companies generate sales by mail. √  Volume of sales in 

response to catalogue 

mailings 

Postal service is vital to information dissemination for business-to-business 

publications. With mail service, publishers can stay in business and 

subscribers or members can get information in timely manner. 

√  Subscription volume 

Post office boxes provide a timely way for small businesses to get mail. Mail 

arrives at the same time each day. 

√  Percent of small 

businesses that use P.O. 

Box as mailing address 

Large Businesses 

UPS and FedEx use USPS for last-mile delivery because it is not 

economically feasible for them to do it. The postal service operates the 

largest civilian fleet in the world, with approximately 220,000 vehicles on 

road (USPS 2009c). 

√  Percent of UPS and 

FedEX deliveries that 

use USPS for last mile 

USPS supports shipping and mailing industries, such as pre-sorting 

businesses and air and rail carriers. Businesses that deal with postal 

processing technology profited by selling equipment to other “posts” and 

other companies. 

√

USPS has 50,000 contracts with small and large companies and is the core 

of a trillion-dollar industry supporting 8 million jobs (USPS 2009c). 

√  Number of contracts 

 Number of jobs supported

9 
Description of Benefit 

Postal Service Post Office 

Metric 

USPS offers Commercial Plus Pricing for high-volume shippers (USPS 

2009d).

√  USPS rates compared 

with other providers’ rates 

Nonprofit Organizations 

Nonprofits benefit from reduced rates. Contact with public by mail provides 

an opportunity for an organization’s membership to grow. 

√  Rates charged to 

nonprofits 

Nonprofits do most of their fundraising by mail and not electronically 

because nonprofits use mailing lists to contact potential donors. 

√  Percent of donations 

received via mail vs. online. 

Communities 

USPS provides stable jobs and has a history of providing employment 

opportunities to minorities. This stable employment has a ripple effect in 

communities where these individuals live. 

√ √  Statistics on employment, 

wages, benefits, and 

advancement 

Some post offices lease their space, which provides a steady flow of rental 

income to community. 

√  Number of post offices 

leasing space 

 Percent of post offices 

leasing space

By helping to generate economic activity for a downtown area, post office 

helps maintain property values and commercial activity, which in turn 

produces tax revenue for local government. These taxes bring benefits to 

entire community (Zigelbauer, et al. 2005). This can also be true of 

suburban post offices located in shopping centers. 

√  Compare tax revenue 

from downtown 

businesses in downtowns 

with and without post 

offices. 

Post offices bring increased foot traffic for nearby businesses. USPS 

customers and employees bring business to local shops. 

√  Foot traffic counts 

 Intercept surveys 

Post offices identify the “main street” of the community, and they anchor the 

retail center. It may be harder to retain or attract other business if post office 

closes. Closure signals giving up on community. 

√  Comparable Community 

and Business Mix 

Analysis (Zigelbauer et al. 

2005) 

A downtown post office makes it more likely that people will want to work 

near the commercial district. 

√

A centrally located post office is easy to reach on foot or by public 

transportation, making it more accessible to elderly, disabled, and lowincome populations and increasing the number of transactions that will be 

conducted at and near the post office. 

√  Population density near 

post offices 

 Public transportation 

access to post offices

When postal and other government services are located downtown, 

governments can maximize the value of existing infrastructure, such as 

roads, utility lines, and municipal service like police, fire, and ambulance 

protection, rather than spending money to extend infrastructure and 

services to new, less developed areas (Skaggs and Smith 1997). 

√  Number of post offices in 

downtown area, suburban 

areas, and exurban areas 

Source: Unless otherwise cited, the descriptions of benefits were obtained through interviews conducted by 

the Urban Institute. 

10 
 

 A Framework for Considering the Social Value of Postal Services 

11 

Large businesses, especially those in the shipping and mailing industries, benefit from 

special pricing for high volume shippers. Taking advantage of the postal system’s extensive 

delivery network, UPS and FedEx contract with USPS for “last mile delivery” of some 

shipments. USPS participates in key industry groups, such as the National Postal Forum and 

the Mailers Technical Advisory Committee, sharing information on technology and products that 

benefit the mailing industry (USPS 2009f). 

Nonprofit organizations pay reduced prices for standard, or bulk mail, which can be used 

to increase membership and solicit contributions. According to interview respondents, nonprofits 

do most of their fundraising by mail, in part because they have built up and maintained mailing 

address lists, and they do not have comparable lists of e-mail addresses. 

Postal services are an intrinsic part of conducting business, and factors such as 

favorable rates and an extensive delivery network are important to achieving business success. 

The postal service itself, because of its size and range of activities, supports many other 

businesses in the mail and delivery industry. Post offices and their services provide additional 

benefits to business as well as to communities, as discussed below. 

USPS provides additional benefits to communities as an employer, a tenant (in 

communities where post offices are leased), and an economic generator. Post offices help to 

generate economic activity when they are located downtown or in a shopping area with other 

businesses. Public buildings, including courthouses, libraries, and post offices draw many 

people on a typical day, generating potential business for surrounding merchants and making 

downtowns more hospitable (Zigelbauer, Ryan, and Grabow 2005). 

Groups interested in the sustenance and revitalization of downtown areas, such the 

Trust for Historic Preservation’s Main Street program, see post offices as vital to the health of 

downtown areas. They argue that post offices generate a great amount of pedestrian traffic, 

which provides spin-off business for nearby shops, offices, and restaurants. For example, a 

consumer survey conducted in the 1990s by Iowa Main Streets communities found that over 80 

percent of the people shopping downtown did so because the post office was located there 

(Skaggs and Smith 1997). Main Street proponents also note that the economic activity created 

by post offices helps maintain property values in addition to commercial activity, and that both 

produce tax revenue for the local government, which can be used to maintain and improve 

services for the local community. 

One Main Street program coordinator noted that people visit the downtown post office 

monthly, weekly, and daily, bringing economic and social vibrancy to the area. This 

respondent also pointed out that her community’s post office rents its space, and that in 

2008 the USPS renovated the exterior of the post office’s storefront and made it 

handicapped accessible. The Main Street program convinced the building’s owner to 

renovate the adjacent storefronts at the same time. The aesthetic improvements to the 

buildings encouraged other owners to improve nearby storefronts, making the whole 

area more attractive to shoppers. 
 

 A Framework for Considering the Social Value of Postal Services 

12 

Historic preservationist Donovan Rypkema (Rypkema 2005) argues that improvement of 

existing buildings, such as post offices, creates more jobs than new construction because a 

rehabilitation project requires more labor than materials, and thus provides jobs to local 

craftsmen such as carpenters, electricians, plumbers, and painters, who pay taxes locally and 

patronize local businesses. In contrast, materials for new construction are often shipped in from 

afar and thus have a much more limited effect on the local economy. He adds that historic 

preservation has benefits that extend beyond a rehabilitation project, including the creation of 

new businesses; an increase in private investment, tourism, property values, quality of life, 

sense of neighborhood, community pride, and property and sales taxes; and the dilution of 

concentrated poverty or physical deterioration. 

Main Street proponents also argue that a centrally located post office makes the best 

use of existing infrastructure and services, while post offices moved to outlying areas may 

require new roads. At the very least, they require a longer trip for police, fire, or ambulance 

workers in the event of an emergency. Lastly, Main Street supporters maintain that the closure 

of a downtown post office can have a devastating economic impact on a local community. The 

loss of foot traffic reduces business at nearby establishments, possibly causing businesses to 

move locations. This reduces tax revenue because of decreased economic activity, decreases 

property values, and generally reduces the vitality of the area. 

It should be noted that suburban post offices located in shopping centers can similarly 

serve as hubs of social and economic activity. For people living in the suburbs, where social 

contact is less frequent than for those living in denser areas, the opportunity for social 

interaction provided by the post office may be particularly welcome. Just as in downtowns, 

nearby shops benefit from the business visitors to the post office bring. 

A Missouri resident noted to her Main Street coordinator that the post office enlivened 

her downtown area both socially and economically: 

The post office, like the coffee shops, restaurants, and offices, is a crucial part of 

downtown life. It’s a point of daytime activity that gives downtown its personality. I 

[have my] office downtown and really enjoy the walk to the post office. For people 

who aren’t based downtown, it’s a great chance to stop in for coffee or lunch. The 

post office puts feet on the street, and I like that a lot. 

Further support of the view that post offices are community assets comes from the 

United Kingdom, where the Conservative Party recently proposed giving local residents powers 

to protect community assets from closure and allow them to take over the running of public 

buildings (LGC 2009). The policy would allow nonprofit community groups to take over 

struggling local facilities, including post offices (Gray 2009). 

Safety and Security (Table 3) 

Safety and security include security of the mail as well as safety of individuals and 

communities. People trust the USPS to keep their mail safe, whether at the blue box on the 
Table 3 

Benefits of the Postal Service and Post Offices: Safety/Security 

Description of Benefit 

Postal Service Post Office 

Metric 

Mail carriers provide a neighborhood watch function and can observe potential 

dangers or problems. They carry cell phones and can report fires and accidents 

and help victims. 

√  Number of 911 calls by 

carriers on routes 

Carriers can observe if mail is not collected and check if the resident is ill or 

injured. Carriers can find people who have fallen and get help (USPS 2009e). 

√

Postal service disseminates information about missing children, safety tips for 

children, and community emergency procedures. 

√  Volume of mail, posters 

 Number of missing children 

recovered 

USPS can provide back-up communication network in emergencies. √

Postal service has agreed to deliver medications in case of pandemic or 

bioterrorism. 

√

USPS is a leader in responding to disasters. Its address base enables government 

and other responders to find people (e.g., FEMA and the American Red Cross 

used the database after Katrina). USPS is a logistics company, more actionoriented than other federal agencies, and is accustomed to delivering every day. 

√

Following natural disasters, USPS is often the first federal organization to 

reestablish contact with population. 

√

Nonprofits, which rely on mail for their donations and existence (such as the 

American Red Cross or hospitals), play a vital role in recovery from disasters. 

√  Percent of donations 

received via mail 

Postal service and post offices are a reassuring sign of presence of U.S. 

government in communities. 

√ √

Mail delivered to box at post-office or to a blue box is secure. √ √

Postal clerks can watch for suspicious mailing behavior and flag potential problem 

packages. 

√ √  Number of reports of 

suspicious behavior and 

packages 

Customer traffic to post offices means a safer environment for other businesses 

and shoppers. 

√  Crime rates in 

neighborhoods with and 

without post offices 

Services such as certified mail offer a reliable paper trail for important documents. √  Volume of certified mail 

 Number of certified mail 

users

Postal service helps prevent mail fraud and identity theft. 

People find it reassuring that tampering with or misdirecting the mail and mail fraud 

are federal crimes. 

√

People trust USPS to keep their mail safe and to get it to its destination in a timely 

and secure manner. 

√ √  Consumer surveys (e.g., 

Ponemon Institute) 

Postal employees assist federal, state, and local law enforcement authorities. They 

collect evidence and otherwise assist in criminal investigations. 

√ √

Source: Unless otherwise cited, the descriptions of benefits were obtained through interviews conducted by 

the Urban Institute.

13 
 

 A Framework for Considering the Social Value of Postal Services 

14 

street or at a post office box. The public knows that tampering with or misdirecting the mail and 

mail fraud are federal crimes. Postal clerks can observe suspicious mailing behavior and flag 

potential problem packages. The U.S. Postal Inspection Service assists commercial mailers in 

implementing procedures to protect mail security (USPS 2009g). 

Postal customers can also purchase services such as certified mail to assure a reliable 

paper trail for important documents. 

The postal delivery infrastructure, including residential address information, places 

USPS in an excellent position to assist in disasters, helping to find people and delivering 

medications in cases of pandemic or bioterrorism. Additionally, the postal infrastructure can be 

seen as a back-up mechanism that would enable commerce and personal communication to 

continue in case of an “Internet attack” that disables electronic communication. 

The presence of mail carriers contributes to neighborhood safety. Since they are familiar 

with the neighborhoods they serve and the homes on their routes, mail carriers can identify 

suspicious or unusual behaviors and check on residents. Both the National Association of Letter 

Carriers (NALC) and USPS include examples of local heroes on their websites, such as 

instances where mail carriers who came upon residents who had fallen or were ill responded by 

calling 911 and assisting residents until help arrived (NALC 2008; NALC 2009; USPS 2009e). 

Post offices also contribute to community safety by increasing traffic in commercial districts and 

providing a visible government presence. 

The Postal Service also publicizes information related to safety and security. For 

example, the “America’s Looking for its Missing Children” Program has relied heavily on the 

postal service to publicize images of missing children through lobby posters and included with 

mailings of advertising products. The program (sponsored by Valassis, a media and marketing 

services firm) works in partnership with the U.S. Postal Service and the National Center for 

Missing & Exploited Children. Program leaders note: “The mailbox is a powerful way to reach 

people. If you put information in the mailbox, people read it and respond.” The program’s 

mailings also include safety tips for parents and children. Over 1,700 of 2,000 children featured 

in this program have been recovered, with 149 of them attributed to the mailings, according to 

Valassis executives. 

Environmental (Table 4) 

Environmental benefits of the postal service encompass a wide range of initiatives that 

USPS has undertaken to reduce its carbon footprint. Table 4 highlights benefits mentioned by 

interview respondents. Much more detail is available in the USPS 2008 Sustainability Report 

(USPS 2008a). USPS energy saving efforts include, but are not limited to, reducing motor 

vehicle gasoline consumption, reducing solid waste and recycling, and building and operating 

sustainable, “green” buildings. USPS reduces gasoline consumption by mapping out energyefficient routes, using one carrier to serve a large area, and providing last mile delivery for other 

delivery companies, thus reducing the number of vehicles that are traveling the same route. 
Table 4 

Benefits of the Postal Service and Post Offices: Environmental Benefits 

Description of Benefit 

Postal ServicePost Office 

Metric 

One carrier serves a large area. √  Median size of 

service area 

Consumers can mail letters close to their homes and get deliveries to their homes 

rather than drive. 

√

Packages can be picked up at homes or businesses, reducing need for trips to the 

post office. 

√  Percent of all 

USPS handled 

packages picked 

up at homes or 

businesses 

Post offices are located in areas near other public buildings and businesses, 

reducing the need for consumers to make multiple trips (USPS 2008a). 

√

Carbon footprint of postal delivery is relatively low compared to alternatives. Paper 

mail creates no more carbon emissions than electronic mail. 

√  Carbon 

emissions of 

paper mail 

compared to 

electronic mail 

All mail accounts for less than 5 percent of all municipal waste. √  Data on sources/ 

amounts of 

municipal waste 

Some post offices are drop-off points for recycling cell phones and other goods. √  % of post offices 

that accept 

goods for 

recycling 

 Volume of goods 

collected for 

recycling

USPS operates one of the nation’s largest fleets of alternative fuel capable 

vehicles. 

√  Owned vehicle 

energy use by 

fuel type tracked 

over time 

 % of fleet that 

uses alternative 

fuels 

Source: Unless otherwise cited, the descriptions of benefits were obtained through interviews conducted by 

the Urban Institute.

15 
 

 A Framework for Considering the Social Value of Postal Services 

16 

USPS also helps individuals reduce automobile use by placing blue boxes in neighborhoods, 

providing home delivery, and locating post offices near other community services and retail 

establishments. USPS uses a range of options to deliver the mail, including walking, bicycles, 

and a large fleet of alternative fuel-capable vehicles. About 60 percent of USPS facilities have 

work-site recycling programs for one or more commodities. In addition to these programs for 

employees, in 2008 almost 4,000 post offices offered lobby recycling for paper, and some post 

offices are drop-off points for recycling electronics as well (USPS 2008a). These programs save 

energy and educate USPS employees and the public about environmentally sustainable 

practices. 

The location of post offices in downtown areas is also considered a “smart growth” tool 

by urban planners and preservationists because city centers are more likely to have public 

transportation. Locating post offices and other public buildings near downtowns or other transit 

hubs helps communities reduce traffic congestion (Pianca 2002). Several states have 

established policies directing state agencies to locate downtown wherever possible, requiring 

consideration of proximity to public transportation, pedestrian access to retail and commercial 

facilities, and opportunities to use historic structures (another conservation measure, as it 

avoids duplication through new construction). The General Services Administration (GSA) also 

encourages the location of federal agencies in historic properties and districts, especially in 

central business districts (National Historic Preservation Act of 1966, Amended 2006). 

Other Government Services (Table 5) 

The postal service facilitates a number of other government services, including voting by 

mail, registering to vote, applying for an absentee ballot, applying for a passport, and Selective 

Service registration. Within the United States, USPS provides information and implements 

voting by mail in states that provide this option, as well as absentee voting in all states. The 

Postal Service also supports Military Absentee Voting. Local election officials mail absentee 

ballots to overseas service members and service members overseas return their ballots free of 

charge from any military post office (APO/FPO), American embassy or consulate. Last year 

more than 17 million absentee ballots were delivered by the Postal Service (USPS 2008c). 

In 2008, USPS accepted 8.5 million passport applications (USPS 2009c) and some post 

offices also provide passport photo services. In FY 2007, the postal service processed 4.9 

percent or 124,000 of all Selective Service registrations (Pommerening 2008b). Congressional 

communications are delivered free of charge by the USPS and income tax forms are available 

at post offices. The postal service also cooperates with other federal agencies as well as state 

and local governments upon request. For example, USPS is currently assisting the Census 

Bureau with preparations for the 2010 Census. Many state wildlife departments have used rural 

mail carrier surveys to track populations of small game. Volunteer mail carriers record all 

observations of specified wildlife (e.g., quail and rabbits) for a set survey period as they travel 

their normal mail delivery routes (Applegate 1997; Kentucky Department of Fish and Wildlife 

Resources 2002). 
Table 5 

Benefits of the Postal Service and Post Offices: Other Government Services 

Description of Benefit 

Postal ServicePost Office 

Metric 

Individuals can vote by mail. A study of Oregon’s Vote by Mail electoral process 

showed that vote by mail increased voter turnout, particularly among those 

working, homemakers, students, and those who are disabled/unable to work 

(Southwell 2004). 

√  Number and percent 

of absentee ballots 

delivered by USPS 

Individuals can obtain forms to register to vote and apply for an absentee ballot 

in the post office (Lewin 2008). 

√  Number of voter 

registration forms 

distributed 

 Number of absentee 

ballot applications 

Individuals can apply for and receive passports. √ √  Number of passport 

applications 

accepted 

 % of all passport 

applications 

nationally 

Individuals can register for the military. √  Number of Selective 

Service registrations 

processed 

Individuals can obtain federal tax forms at post offices. √  Number of post 

offices that provide 

federal tax forms 

Individuals receive important government notifications (e.g., from the Internal 

Revenue Service, Social Security Administration). 

√

USPS facilitates delivery of Congressional communications. √

Letter carriers assist wildlife agencies in counting wildlife. √  Number of states 

 Number of miles 

covered 

 Response rate on 

Rural Mail Carrier 

Surveys 

USPS assists the Census Bureau with preparations for coordinating and 

conducting the national decennial census. 

√

Source: Unless otherwise cited, the descriptions of benefits were obtained through interviews conducted by 

the Urban Institute.

17 
 

 A Framework for Considering the Social Value of Postal Services 

18 

Information Exchange (Table 6) 

Information exchange has been the core of the postal service since its founding, when it 

was intended to maintain an informed and educated citizenry in order to perpetuate a republican 

form of government (John 2008). Today, information exchange includes personal, business, 

political, and public service communications and has been described by some respondents as 

the great equalizer, because information is available to all at uniform prices regardless of where 

they live. Although many other forms of information exchange, such as television and Internet, 

are possible today, respondents still noted particular benefits of the favorable pricing and 

delivery services of the postal system. For example, it was noted that investigative journalism is 

still largely supported by the print media, and many smaller publications rely on mail subscribers 

to pay these costs. Often these publications support a particular political viewpoint and the 

circulation of publications with a wide range of views contributes to open discussion. 

The postal service also facilitates the distribution of public service information both 

through the mail delivery system and by displaying notices at post offices. The postal service is 

also no longer limited to printed media: USPS provides information and services online, 

averaging 1.2 million visitors each day to its web site, usps.com (USPS 2009d). 

Social Linkage (Table 7) 

Social linkage is a very broad and subjective concept that was frequently mentioned by 

respondents to refer to personal contacts with postal employees and with the community, as 

well as correspondence with family and friends across long distances. 

Greeting cards are one example of this. Sending and displaying greeting cards are an 

American cultural traditions, with 7 billion cards purchased per year. Over 60 percent of greeting 

cards are mailed (Greeting Card Association 2009). They are used as part of the celebration of 

family rituals and religious or secular holidays and to maintain and enhance connections with 

families, friends and others, particularly at times of difficulty (such as illness or mourning) and 

special occasions or transitions (such as birthdays, graduation, engagement and marriage). 

Use of the postal service to send greeting cards (and, likely, personal notes and letters) can be 

seen as a contemporary example of the historic view that the national post is intended to bind 

the nation together (Erickson 2000, 1997). 

Research on greeting card use indicates that cards sent through the mail are especially 

important to low and middle-income groups, suggesting they would be more negatively affected 

by postal rate increases or service curtailment and might reduce the use of the mail for sending 

greeting cards (Erickson, 2000, 1997). To the extent that low income groups are less likely to 

have computers or be able to afford Internet service, they are more dependent on the post for 

this important form of linkage to family and friends. 
Table 6 

Benefits of the Postal Service and Post Offices: Information Exchange 

Description of Benefit 

Postal ServicePost Office 

Metric 

Journals, newspapers, political magazines, etc. bring information to the home. Low 

rates allow receipt of a wide range of materials regardless of location. Periodicals 

may be highly specialized for particular industry groups. 

√  Number of 

periodicals that 

receive special 

rates, by 

circulation 

Small, political magazines are important to democracy because they educate 

voters. They offer a range of perspectives, contributing to political discourse. 

Publications rely on mail subscribers to pay costs of investigative journalism. 

√  Circulation 

numbers for 

small political 

journals 

Periodicals link together people who share interests but live far from one another. √

Mail service aids communication within communities. For example, local churches 

and other community religious institutions mail bulletins to members. 

√

Materials displayed in post offices include wanted criminal/fugitive posters, missing 

children posters, and community notices. 

√

Source: Unless otherwise cited, the descriptions of benefits were obtained through interviews conducted by 

the Urban Institute.

19 
Table 7 

Benefits of the Postal Service and Post Offices: Social Linkage 

Description of Benefit 

Postal ServicePost Office 

Metric 

A person experiences a “mail moment” when he or she gets correspondence, 

especially from friends or family. 

√  Consumer surveys of 

perceived benefits 

Sixty percent of the 7 billion greeting cards purchased annually in the US are 

mailed (Greeting Card Association 2009). 

√  Volume of greeting 

cards handled by 

USPS and trends over 

time 

People often know their postmaster and are familiar with post office employees. 

Postmaster tends to be one of the leaders in the community. 

√

Postal service and local post offices support social connection and community 

identity. 

√ √  Community surveys on 

social capital (e.g. 

Social Capital 

Community Benchmark 

Survey) 

In rural areas much of mail is delivered to P.O. boxes so residents come to the 

post office every day. Rural post offices are gathering places central to a 

community’s social and cultural life. 

√  % of population in a 

community that 

receives mail at the 

post office 

 Counts of post office 

visitors 

The post office is a place to see others in the community, including people of all 

kinds. 

√

Post offices establish community identity, especially in rural areas, and 

engender community cohesion. 

√

People can send packages to family members in college or the military. √ √  Volume of mail to those 

serving in the military 

Mail helps maintain social connection and provides access to the outside world, 

particularly for those who are elderly or isolated. 

√  Census data on elderly 

and isolated 

populations 

The mail carrier is a source of social contact for isolated populations. Rural 

carriers may be a person’s only daily contact. 

√  Census data on elderly 

and isolated 

populations 

Mail carriers participate in annual food drives and a variety of volunteer 

activities. 

√ √  Data on amount of 

food collected 

Postmasters help customers with low literacy levels by reading the mail to them, 

helping them write checks, etc. 

√

People can mail packages to their home countries. Because international 

transactions can be complex, face-to-face assistance from a clerk is important, 

particularly for those with limited English. 

√ √

Source: Unless otherwise cited, the descriptions of benefits were obtained through interviews conducted by 

the Urban Institute.

20 
 

 A Framework for Considering the Social Value of Postal Services 

21 

 Mail carriers are a source of personal contact, especially for isolated or homebound 

individuals. Postal employees are also active participants in their communities, fostering social 

connections through food drives and volunteer activities. Post offices were mentioned frequently 

as sources for social linkages and community connections. Since many rural residents come to 

the post office every day to collect their mail, the post office serves as a gathering place. 

Community notices are posted on bulletin boards, and post office staff are familiar faces that 

assist customers in reading the mail and completing complex transactions. 

The quotation from the woman caring for her 95-year-old homebound mother, quoted at 

length above, provides an example of the importance post offices can play as a place that 

supports social connection. Homebound most of the time, the woman viewed the post office as 

a valued place to see friends and casual acquaintances. One Main Street program coordinator 

noted that her husband, an architect who designs apartments and condominiums, always 

includes a central area for mail receipt to provide an opportunity for social exchange. She views 

this as particularly important for the elderly, for whom retrieving their mail might be the sole 

opportunity for daily social activity. 

Civic Pride and Patriotism (Table 8) 

Finally, the postal service continues to be a source of civic pride and patriotism. In the 

Ponemon Institute’s 2009 Privacy and Trust Survey (USPS 2009a) more than 87 percent of 

respondents ranked the postal service first among 74 agencies, meaning that Americans trust 

the USPS as the government agency best able to keep their information safe and secure. The 

postal service represents the federal government in visible ways in people’s daily lives, from the 

uniformed mail carrier to the flag on the post office. USPS also supports civic engagement by 

providing information on voting, taxes, wanted criminals, missing children, and disaster 

preparedness procedures. 
Table 8 

Benefits of the Postal Service and Post Offices: Civic Pride and Patriotism 

Benefit 

Postal ServicePost Office 

Metric 

USPS is a symbol of the federal government. √ √

USPS is a trusted, personal representation—a “face”—of the federal government. √ √  National surveys 

(e.g., Ponemon 

Institute) 

The post office is tied to community identity. Post offices and communities often 

share the same name. 

√

USPS continues to be the most valued government agency. In surveys, it is among 

the top five most respected and valued businesses in the country. 

√ √  National surveys 

Source: Unless otherwise cited, the descriptions of benefits were obtained through interviews conducted 

by the Urban Institute.

22 
 

 A Framework for Considering the Social Value of Postal Services 

23 

IV. MEASUREMENT AND METHODS 

For many of the benefits described above, activity measures exist to assess how many 

people are using a particular service. For example, tallies are kept on the use of passport 

services, reading materials for the blind, voter registration, and mail-order prescriptions. In some 

cases, values have been estimated for these services. But some of the benefits described in the 

previous section are much harder to quantify. How much is it worth to residents to have a 

nearby blue box? How much is it worth to have a post office nearby where serendipitous 

encounters can occur? 

To answer these questions, we looked to postal services research as well as the fields of 

community development and economics to identify methods for measuring social value that 

might be applicable for further USPS research. One of the more commonly used methods is 

willingness-to-pay surveys. Intercept surveys and foot traffic surveys are often used to estimate 

the impact of institutions, including post offices, on economic activity and social life. The 

framework and analytic techniques of welfare economics can be applied to postal services, as 

can hedonic pricing models. Also applicable are methods of evaluating social capital, civil 

society, local places of meeting, and downtown business mix, as well as assessment of social 

return on investment. The developing area of happiness economics might provide another tool 

for measuring social value in the future. 

Some analysts point out that it is important to distinguish between the value to the 

mailers and the value to the recipients. The amount mailers are willing to pay for USPS products 

is captured to some extent in annual demand elasticities estimated by the USPS. These 

assessments tend to show that demand for many USPS services are inelastic; that is, mailers 

continue to buy the goods despite price increases. It is, however, more difficult to estimate the 

importance of mail to the recipient. 

Analysts also emphasize the distinction between postal service value and public value. It 

is one thing to calculate wages of a postmaster and a post office’s employees or to measure 

how much post office employees or users spend in nearby businesses. It is another thing to try 

to answer the question: What is the perceived value to the community? That value will vary from 

population to population, with differences across generations, across the rural-urban divide, and 

across socioeconomic groups. The methods listed in Table 9 all attempt in some way to tackle 

the challenge of quantifying the more intangible social value of a good. 
Table 9 

Metrics for Valuing Social Benefits 

Analytical Method Description Metric Source 

Willingness-to-pay 

surveys 

Also called contingent valuation and 

stated-preference surveys, these surveys 

ask people how much they would be 

willing to pay for services. 

Dollar amount willing to pay to 

maintain services 

NERA 

Economic 

Consulting 

2009 

Intercept surveys Visitors are stopped and asked about the 

reason for their visit and the frequency 

with which they visit that institution. 

Number of visitors 

Frequency of visits 

Skaggs and 

Smith 1997 

Foot traffic surveys People at a certain location are counted 

over a period of time. That number is 

compared to the number of people in the 

nearby area over the same period. 

Ratio of people visiting institution 

to those in the vicinity 

Skaggs and 

Smith 1997 

Social capital 

measurement 

validity 

A method of constructing and testing the 

reliability of measures of social capital 

from survey items. 

Likert type scales to measure 

trust, reciprocity, density and 

diversity of network. 

Simple counts to measure 

network size 

Saguaro 

Seminar 

2001 

Stone and 

Hughes 

2002 

Valuation of civil 

society on 

socioeconomic 

well-being 

Spatial effects models used to model an 

OLS regression of civic engagement 

variables on economic indicators (e.g., 

median family income). 

Change in median income, 

inequality, poverty rate, and 

unemployment rate as a function 

of civic engagement 

Tolbert, et 

al. 1998 

Economic benefits 

of local places of 

meeting 

A method of placing economic value on 

local places of meeting in a small-town 

community. 

Change in median income, 

poverty rate, non-migration, and 

unemployment as a function of 

the natural log of the number of 

local places of meeting 

Tolbert et al. 

2001 

Comparable 

Community and 

Business Mix 

Analysis 

A method used to measure the effect of 

government buildings in downtown areas 

on the number and diversity of business in 

the downtown area. 

Comparison of the total number 

of businesses and businesses by 

industry in downtowns with and 

without a government office. 

Zigelbauer 

et al. 2005 

Welfare economics 

analytic framework 

A field of microeconomics that focuses on 

the optimal allocation of resources and 

goods and how this affects social welfare. 

Industry characteristics, pricing, 

demand – varies by issue and 

model 

Arrow 1963 

is one 

example 

Hedonic price 

function 

A method used to estimate economic 

value for a non-market good by observing 

behavior in the marker for a related good. 

Housing prices or property 

values to estimate the value of 

access to public goods or 

amenities 

Gravel, 

Michelangeli, 

and Trannoy 

2006 

Social return on 

investment 

A method of valuing a social service 

activity over time that has been used by 

nonprofit organizations to monetize the 

value of their programs. 

Net present value 

Return on investment rate and 

ratio 

Emerson et 

al. 2001 

Happiness 

economics 

Economists estimate happiness, or wellbeing, as a function of a public good, 

income, and other demographic data. 

Happiness as a function of the 

presence of a public good. 

Helliwell 

2005 

Levinson 

2009 

24 
 

 A Framework for Considering the Social Value of Postal Services 

25 

Willingness-to-Pay Surveys 

One increasingly common, though still somewhat controversial, tool for estimating the 

value of non-market goods like social benefits is willingness-to-pay surveys. These surveys are 

also called contingent valuation studies because they ask a person to assess the value of 

something but not actually pay for it. The hypothetical nature of the payment is the source of the 

controversy surrounding these surveys. People have difficulty attaching a dollar value to 

services and an even harder time considering an extreme case such as not having a post office. 

Despite their shortcomings, willingness-to-pay studies have been used to assess the value 

people place on recreational opportunities, wildlife opportunities (Holder et al. 2009), and, 

recently, postal services in the United Kingdom (NERA Economic Consulting 2009). To date no 

such study has been performed in the United States.2

The UK report assessed the social value of the entire postal network at between 2.3 

billion pounds and 10.2 billion pounds. It defined social value as customers’ willingness to pay 

for the post office and the services it provides (which in the UK include not only mail and parcel 

service but also receipt of government benefits, licensing, bill payment, and access to banking 

services). The study explained that its findings represent the “consumer surplus” connected to 

its services in two situations: (1) If postal services were offered not through post offices but 

through some less convenient alternative, the social value is the extra convenience that the post 

offices provide compared to the alternative, and (2) If postal services were no longer available, 

the social value is the benefit customers gain from the service existing at all, net the price they 

pay for it. A peer review of the study noted that while the estimated social value’s range was 

quite wide, the study “provides a useful estimate of such values...and clearly indicates that 

network benefits far outstrip costs” (NERA Economic Consulting 2009). 

Since many of the benefits discussed in this report come at no cost to consumers, it is 

difficult to quantify how much one would be willing to pay for such services and post offices. 

Such surveys could be useful particularly in terms of calculating how much to charge users if the 

postal service decided to charge for some of the services that are currently free (e.g., home 

delivery of mail). Economists interviewed by the Urban Institute indicated that a willingness-topay study would be an appropriate tool for assessing the social value of the USPS’s services. 

 

2

 The 2009 study by George Mason University researchers The Universal Service Obligation and the Postal 

Monopoly included an assessment of public needs and expectations. A survey for this part of the report included one 

willingness-to-pay question. The survey asked respondents: “Suppose the postal service decided to close your 

nearest post office. What is the largest fee you would be willing to pay to keep it open?” Of the approximately 800 

respondents, 64 percent replied $0, 18 percent replied $25, 5 percent replied $50, 3 percent replied $100, 2 percent 

replied $150, and the remainder replied “Don’t know” or refused to answer. The respondents were also asked “What 

would you think about the Postal Service closing your post office and replacing it with service at a nearby store in 

your neighborhood?” Approximately 20 percent said they would favor or strongly favor that option, 28 percent said 

they were indifferent, and 49 percent were opposed or strongly opposed. 
 

 A Framework for Considering the Social Value of Postal Services 

26 

However, they hazarded that such a study would need to be very carefully constructed and 

would need to force people to consider as realistically as possible how much they would be able 

and willing to pay for postal services. Respondents would need to understand that USPS is not 

supported by tax dollars, (e.g., these are not services they are already paying for with their tax 

dollars). Such a study would also need to look at the question, as the UK study did, of how 

people would respond if the USPS changed not just the amount of its services, but ceased its 

operations altogether. 

Intercept Surveys and Foot Traffic Counts 

Historic preservationists, market researchers, economic development practitioners, and 

others use intercept surveys and foot traffic counts to estimate economic activity generated by 

downtown businesses. An intercept survey is a simple tool in which interviewers “intercept” 

people visiting a particular location, such as a shopping mall, a downtown area, or a social 

service office and very briefly ask them about the purpose of their visit, their experience, or 

other questions about their visit. For example, respondents in a downtown area might be asked 

if they intend to visit the post office on that particular trip, as well as how often they visit the post 

office on average each day, week, or month. Foot traffic counts involve counting the number of 

people present in a location, such as the post office, and comparing that to the number of 

people visiting the surrounding area overall. 

Main Street programs contacted by the Urban Institute indicated that they conduct foot 

traffic and intercept surveys regularly to measure the economic activity in business districts, 

including at post offices. They also collect data from post offices on average usage in order to 

measure the value of the post offices and the potential crossover patronage to nearby 

businesses. Some Main Street programs also conduct car counts to measure the level of 

activity at post offices and in downtown areas, while others track the use of public parking 

spaces downtown. 

 An intercept study approach also was used, along with participant observation, to 

conduct ethnographic research among greeting card shoppers. Researchers “shopped” 

alongside customers in a greeting card store, observing them and intercepted some to ask 

about the cards they selected in order to obtain insights about the role that greeting cards play 

in American culture (Erickson 1997). 

Social Capital Measurement 

Social capital refers to the social benefits that arise from involvement in social networks, 

such as clubs, religious congregations, PTAs, unions, coworkers, neighbors, and ones’ families. 

Benefits from social capital include, but are not limited to, information sharing, trust, 

cooperation, civic engagement, and community empowerment. A growing body of literature 

over the last several years shows that social capital—and the trust, reciprocity, information, and 

cooperation associated with it—enables many important individual and social goods. For 
 

 A Framework for Considering the Social Value of Postal Services 

27 

example, communities with higher levels of social capital are likely to have higher educational 

achievement, better performing governmental institutions, faster economic growth, and less 

crime and violence (Saguaro Seminar 2001). 

Stone and Hughes (2002) sought to create a statistically reliable measure of norms, 

networks, and network characteristics in an attempt to find a measure of social capital. Using 

data from the Families Capital and Citizenship project of the Australian Institute of Family 

studies, they test three analytic approaches for measuring social capital. The surveys used 

contained Likert-type scale3

 measures of an individual’s trust, reciprocity, density of network, 

and diversity of network. The sizes of an individual’s networks were all simple counts. The first 

technique they used to measure social capital was based on the particular type of network (e.g. 

family-based ties, friendships, etc.) For their second technique, they tried to create a single 

measure of social capital. For their third technique, they clustered individuals based on their 

strengths and weaknesses in regards to the different types of social capital and the different 

types of networks. 

To validate the measures of social capital, they compared the three different social 

capital measures to other variables noted in social capital literature to test whether the 

relationship is statistically consistent with the theory. Using a combination of OLS and 

multinomial logit regressions,4

 they found that all three measures of social capital were 

statistically valid, although using a single measure of social capital was more problematic than 

the other two. They suggested that the type of social capital used should reflect the study 

question. This methodology could help in measuring and testing the social values of post offices 

and postal services that are difficult to quantify, since many of the social benefits discussed 

earlier include the ability of the post office and the postal service to strengthen social linkages 

and communities, both of which contribute to social capital. 

Valuation of Civil Society on Socioeconomic Well-being 

Some researchers have tried to measure the effect of civic engagement on 

socioeconomic variables. For example, Tolbert, Lyson, and Irwin (1998) used a model with a 

residual spatial effects term to estimate the effect of civic engagement variables on median 

 

3

 A Likert type scale is a set of declarative statements, for which the subject must respond based on level of 

agreement or disagreement with the statement on a numeric scale, 0-11 in this study. 

4

 An Ordinary Least Squares (OLS) regression is a regression in which the best fit is determined by the 

minimization of the sum of the squared residuals. Thus, it aims to minimize the number of observations for which the 

difference between the observed value and the value predicted by the model is large. A multinomial logit regression is 

a regression for which the dependent variable can have more than two discrete outcomes. 
 

 A Framework for Considering the Social Value of Postal Services 

28 

family income, family income inequality, family poverty rate, and the unemployment rate. The 

data came from the Census, the Association of Statisticians of American Religious Bodies, Gale 

Research Co., and the United States Department of Agriculture. Using an OLS regression, they 

found that civic involvement reduced family income inequality and poverty rates, while it had a 

mixed effect on median household income and mean number of unemployed. Regressions of 

this sort are useful for providing quantifiable value to social benefits, and could be used in 

conjunction with survey data to show how social benefits have economic outcomes. 

Economic Benefits of Local Places of Meeting 

Tolbert, Irwin, Lyson and Nucci (2001) argue that places of local gathering are important 

for creating the vibrant social network necessary to improve civic engagement and allow for 

local informal job search networks. Using data from the 1992 Economic Census Program, they 

ran an OLS regression of a small town’s civic community, including the number of local places 

of gathering, on its median income, poverty rate, nonmigration rate, and unemployment. They 

ran separate regressions for nonmetro and metro areas. 

Tolbert, Irwin, Lyson and Nucci (2001) found that a 1 percent increase in the number of 

local meeting places resulted in a .031 percent increase in median income in nonmetro areas 

and a .015 percent increase in median income in metro areas, both were statistically significant. 

They also found that an increase in the number of local places of meeting also significantly 

decreased the unemployment rate, such that a 1 percent increase in local places of meeting 

decreased unemployment rate by approximately .015 in nonmetro areas and by .01 in metro 

areas. They also found that a 1 percent increase in the number of local gathering places led to a 

.01 percent increase in the nonmigration rate in nonmetro areas and a .001 percent decrease in 

the unemployment rate in metro areas. Although it would be difficult to apply this method directly 

to post offices, as often they would only increase the number of places of local meeting by one, 

it does give empirical validity to the indirect economic value of places of meeting and 

consequently post offices as places of meeting. 

Comparable Community and Business Mix Analysis 

Zigelbauer, Ryan, and Grabow (2005) compared the number of business and the 

business mix of Jefferson, Wisconsin, with the number of businesses and the business mix of 

other comparable communities in Wisconsin. Comparable communities were defined to have a 

similar municipal population, have a similar distance from a major city (population over 25,000), 

and have a similar distance to any major discount department store. This sample of Wisconsin 

communities was separated into two groups: those with county government offices downtown 

and those without county government offices downtown. Then, using business data from Info 

USA, they were able to compare the number of businesses and the business mix of downtowns 

with county governments and those without. They found that communities with downtown 

county government offices had 8.4 percent more businesses, 7.4 percent more retail 
 

 A Framework for Considering the Social Value of Postal Services 

29 

businesses, 25 percent more professional, technical and scientific businesses, and 26 percent 

more education, healthcare and social assistance-related businesses. However, communities 

with downtown county government offices had fewer restaurants than communities without 

downtown county government offices. 

A similar study comparing downtowns with a post office to comparable downtowns 

without a post office could readily be done, and could be used to estimate the value of the 

presence of post offices in downtown areas. One could also study downtowns before and after 

the closure of a post office. 

Welfare Economics Analytic Framework 

Welfare economics focuses on the optimal allocation of resources and goods and how 

this affects social welfare. It considers how goods are distributed and how that affects the 

common good. It has been used to consider a broad range of policy issues from tax policies to 

air pollution, to public school choice. Techniques include assigning units of welfare or utility, 

sometimes based on willingness-to-pay surveys, and creating models that are tested using 

econometric analysis. 

Hedonic Price Function 

Hedonic pricing is used to estimate economic value for a non-market good by observing 

behavior in the market for a related good. Empirical estimations of housing hedonic prices 

functions, which include local public goods, are fairly common. Gravel, Michelangeli, and 

Trannoy (2006) used housing prices to estimate the social value of the public goods to which 

the current housing occupants had access. They measured the value of 17 public goods, 

including public schools, geographic characteristics, and culture/commercial infrastructure in 

several cities in France. The value of these public goods was calculated in relation to the 

proximity of the houses to the public goods, and controlling for other physical characteristics of 

the housing, such as number of bedrooms. Post offices were not included in this particular 

study; however, a similar study could be done to estimate, for example, the effect of a home’s 

proximity to a post office on the price of the home. 

Social Return on Investment 

The field of social return on investment, or SROI, offers yet another method of analyzing 

social value. Social return analysis emerged in the 1990s from social accounting and costbenefit analysis. Nonprofit organizations, particularly those in the UK and Europe, have used 

this type of analysis to place a social, environmental, and economic value on the services they 

provide (London School of Business 2009). An SROI analysis generally involves several basic 

steps: (1) Examine the social service activity over a time period, usually five to 10 years, (2) 

Calculate the amount of investment required to support the activity and analyze the capital 
 

 A Framework for Considering the Social Value of Postal Services 

30 

structure of the nonprofit that supports the activity, (3) Identify the cost savings, reductions in 

spending and related benefits that accrue as a result of the activity, (4) Monetize the cost 

savings and benefits, (5) Discount the savings to the beginning of the investment timeframe 

using a net present value or discounted cash flow analysis, and (6) present the social value in 

terms of net present value and the return on investment as rates and ratios (Emerson, et al. 

2001). 

Because this type of analysis has been developed for nonprofit, or third sector, 

organizations that are smaller than the USPS, an SROI analysis of the USPS might prove 

challenging. However, the SROI principles of assigning monetary values to services that are not 

easily quantifiable could provide a useful framework for an effort to quantify the social value of 

postal services. 

Happiness Economics 

Finally, another emerging method of quantifying non-market goods is “happiness” or 

“stated well-being” economics. These studies estimate happiness as a function of a non-market 

or public good, income, and other demographic data (Levinson 2009). They use data collected 

about happiness from surveys including the General Social Survey, which is annually 

administered by the University of Chicago’s National Opinion Research Center, and the World 

Values Survey, a survey of more than 80 societies administered by an international network of 

social scientists. These surveys ask people to quantify how happy or satisfied they are, often 

using a scale of 1 to 10 (Helliwell 2005). Happiness economists have begun using these 

answers to estimate the value people place on conditions like air quality, price inflation, airport 

noise, urban regeneration, and state cigarette taxes. 

This method is promising but currently somewhat problematic as a tool for assessing the 

value of postal services for two reasons. First, these studies use daily or annual averages of the 

good to estimate their value (Levinson 2009). It might be difficult to quantify the “amount” of a 

postal good, other than to say it exists (e.g., a post office or mailbox is present in a community) 

or not. More important, happiness surveys are often conducted only once a year, making it 

difficult to connect happiness data with a “postal event,” such as the closing of a post office. If 

happiness data were collected on a more frequent basis, it could become easier to determine 

how changes in postal services might affect happiness. 

V. NEXT STEPS 

This study is part of the dialogue that is underway and being encouraged by the PRC to 

obtain broad input on the future of mail and hardcopy communications in the United States. 

This report provides a comprehensive inventory of benefits, but many questions remain. The 

fact that there are benefits beyond the direct economic benefits accounted for in individual 
 

 A Framework for Considering the Social Value of Postal Services 

31 

transactions does not, in itself, recommend the support of all activities of the postal service in 

their current form. Several of the experts interviewed for this study volunteered that current 

USPS services could be improved upon. Some argued that the USPS could improve its 

performance by offering more services from mail trucks or more services and goods—such as 

Internet service, banking, office supplies, groceries, and advertising—at post offices. Others 

argued that well-regulated private enterprises could play a role in an effective postal service. 

 Some benefits were repeatedly mentioned by respondents, but people see the value of 

the post from their own vantage point or constituency that they represent, whether rural 

resident, small business owner, or nonprofit organization. It is very difficult to assure that all 

perspectives have been included and to obtain an objective assessment of benefits, particularly 

those social benefits that are not readily quantified. More in-depth and rigorous research is 

needed to address key questions, including: 

• Can the benefits identified be validated with representative survey samples? 

• What services are valued by particular subgroups or constituencies and 

which population groups benefit most? 

• What is the cost of providing these benefits and how does it compare with the 

benefits? 

• How can some of the social benefits be quantified? 

• Which, if any, of the benefits identified, are viewed as essentially government 

services or unique to the postal service and best provided by the postal 

service? 

• Which benefits, if any, could be provided as well, as affordably, or as 

efficiently by another provider? 

To address these questions, more information is needed about how postal services are 

used and perceived by various categories of consumers, and comparative information is needed 

about alternative services and providers. Regardless of the method, future research into social 

benefits of the postal service should include a comparison of the current system to an 

alternative—a “counterfactual,” in academic parlance. That is, further studies should assess the 

benefits of the postal service compared to services offered by another provider—the United 

Parcel Service, for example—or compared to a certain set of proposed changes within the 

USPS. We recommend the following avenues for further research: 

• Descriptive analysis of available data focusing on key subgroups and 

geographic information; 

• Surveys of consumers, businesses, and nonprofit organizations; 

• Willingness-to-pay analysis; 

• Economic analysis, including regression analysis within a welfare economics 

framework and estimation of hedonic price functions; 
 

 A Framework for Considering the Social Value of Postal Services 

32 

• Cost effectiveness assessment of selected scenarios; and 

• Case studies applying new metrics or examining selected locations in-depth. 

Each of these approaches, described below, are best considered as components of an 

overall research and assessment plan to be carried out over a period of several years. Each will 

contribute to a more comprehensive understanding of the social value of postal services, but will 

still not answer every question. In particular, broad scale cost-benefit analysis and impact 

analysis are particularly challenging. Such studies will need to build on the findings of some of 

the research proposed here and may be applicable only to specific services or locations. 

Descriptive Analysis of Available Data 

Many of the benefits identified are thought to be particularly important for certain 

subgroups of the population. Understanding and quantifying these differential effects can be 

enhanced with additional data analysis, focusing on key subgroups and geographic information. 

When certain services are said to be particularly important to the elderly or to immigrants, just 

how many people are affected and where do they live? A number of studies addressing such 

questions are possible by combining data from existing national databases. For example, 

Geographic Information System (GIS) mapping combined with Census data and other national 

survey data can be applied to identify isolated areas, areas with large numbers of immigrants, 

areas with limited access to banking services, areas with limited Internet access, etc. 

 Available data can also be used to consider post office locations and their benefits to 

communities. A number of these analytic approaches were described in the previous section, 

such as the Wisconsin study that found that communities that are county seats with government 

offices downtown tend to have a greater mix of businesses that those communities that were 

not county seats or that did not have county offices downtown (Zigelbauer, et al 2005). While 

descriptive analyses such as this do not establish cause and effect, they may still offer useful 

evidence about business patterns and post office locations. 

A pre-post analysis of business patterns, property values, and local tax revenues in 

communities that have lost post offices could also be conducted for a large number of 

communities using available data. The point here is that there is a wealth of national data at the 

county level and even at the neighborhood level that address economic, health, safety, and 

social well-being. A range of analytic methods exist that can be applied to better understand the 

relationship between various postal services, as well as post offices, and key indicators in 

available data. 

Surveys 

Since it is difficult to quantify social benefits, carefully constructed national surveys are 

the best method for obtaining subjective information, such as preferences, needs, and behavior. 

Surveys can provide information about how consumers currently use postal services as well as 
 

 A Framework for Considering the Social Value of Postal Services 

33 

the use of comparable services offered by other providers. Surveys would provide evidence 

about the social benefits of the post beyond the largely anecdotal information that currently 

exists. Such surveys should use sample selection methods that allow projections to the larger 

population and use standardized data collection procedures. Based on the findings in this 

paper, valuable information could be gathered through surveys of consumers, businesses, and 

nonprofit organizations, conducted by an independent organization. Beyond further 

documenting and describing the use of postal services, survey questions that ask about 

consumer preferences can be used for willingness-to-pay analysis. 

Surveys of Consumers 

Surveys of consumers (sometimes called household surveys) are recommended to 

address questions such as: what does the public know or understand about the postal service? 

Do they even know about some the services available? What benefits do they identify with mail 

delivery to their homes or postal boxes? What are the benefits of a local post office? Some 

consumer surveys have been conducted, but they vary in their coverage, and some focus on 

reactions to cuts in service but do not document benefits of postal services identified by 

consumers. Surveys of consumers would need to provide clear and uniform introductory 

information to assure that respondents understand what USPS is and the postal services that 

are being addressed in the survey. Postal services do seem to be “taken for granted” and some 

of the literature suggests that the public does not understand that the postal service is selfsupporting and not paid for with tax dollars. 

Surveys of Businesses 

Many business organizations have taken the opportunity to weigh in on postal prices and 

proposed changes in postal operations, but a survey or surveys (e.g., of small businesses and 

large businesses or a separate survey of mail and package industry businesses) would provide 

more systematic documentation of business benefits and preferences and their choice of 

providers, such as FedEX and UPS. A survey of businesses should also address technology -- 

how it has affected their use of postal services and anticipated changes for the future. 

Surveys of Nonprofit Organizations 

Nonprofit organizations encompass a wide range of activities and a wide scope of 

operations. Many nonprofits participate in industry associations unique to their line of work (e.g., 

charitable organizations, political publications, or organizations focused on a particular issue 

such as the environment), and some of these associations advocate about postal processes 

and services on their members’ behalf. A survey sample that captures this diversity would 

provide a more comprehensive picture of the postal benefits, and service needs, of the nonprofit 
 

 A Framework for Considering the Social Value of Postal Services 

34 

sector. Similar to the business survey, questions should address documentation of benefits and 

preferences, their choice of providers, and effects of technology. 

Economic Analysis Using Empirical Methods 

Section IV on Measurement and Methods above, identified several analytic methods 

that, appropriately framed, could be applied to key questions pertaining to postal services. Using 

a welfare economics framework and existing data, regression models can be developed to 

compare allocations of postal resources and/or services. Existing data, such as property values, 

can be used to estimate hedonic price functions. 

Survey data can be used for willingness-to-pay analysis. Although the 2009 PRC report 

on the universal service obligation and postal monopoly included a few willingness-to-pay 

questions in a survey of individuals, to date no large-scale study of willingness-to-pay for postal 

services has been performed in the United States. Economists and other academics note that a 

willingness-to-pay study of the USPS would need to be very carefully constructed and would 

need to force people to consider as realistically as possible how much they would be able and 

willing to pay for postal services. Such a study would also need to look at the question, as the 

UK study did, of how people would respond if the USPS not just changed the amount of its 

services but ceased its operations altogether. 

Cost Effectiveness Analysis of Selected Scenarios 

Cost effectiveness analysis of selected activities and alternatives can be useful for 

decision-making. With input from the postal service and representatives of a variety of human 

service agencies (including probably county as well as federal government agencies and a 

small number of national nonprofit organizations) researchers can develop a number of 

alternative scenarios of post office configurations. The objective of such a task would be to 

identify specific groups of services/functions that would be provided along with postal services, 

design scenarios accordingly, and compare these to “baseline” scenarios representing current 

operations or a scenario with substantially reduced services or elimination of postal services. 

This work would identify and define the major cost elements and sources for obtaining specific 

program cost data, including government program costs for each scenario. With respect to 

effects, the research should identify the likely effects of each scenario and suggest metrics to 

measure these effects. The effects should include both potential positive and negative 

benefits—and consider potential unintended effects. Since it is likely to be very difficult (if not 

impossible) to impute monetary values for some of the benefits this approach arrays the costs 

and major benefits of each scenario, leaving it to decision makers to apply their value judgments 

in selecting among options. 
 

 A Framework for Considering the Social Value of Postal Services 

35 

Case Studies for Applying and Testing New Metrics or for In-Depth Investigation 

For some of the hardest to measure social benefits, a case study approach could be 

used to document use and benefits of postal services in various settings and with differing levels 

of community assets, testing different metrics for suitability and accuracy. As described in 

Section IV, the methods used for social return on investment might be applied to measuring the 

social value of postal services. Since SROI has been used for smaller, nonprofit organizations, it 

would be best to try this approach in a small number of locations or for a limited number of 

potential benefits. Case studies are also a good starting point for identifying costs and benefits 

of particular services. 

 Using a more qualitative approach, case studies -- including interviews, observations, 

and focus groups with consumers -- could assess the key facets of social capital identified in the 

Social Capital Community Benchmark Survey (Saguaro Seminar 2001) in locations with and 

without post offices. These facets include general social trust, political participation, civic 

leadership and association involvement, and equality of civic engagement across a community. 

Case studies are also valuable where a unique situation or event offers an opportunity to 

glean broader lessons. A community’s response to a service change, the postal service’s 

response to a natural disaster, the entry of a competitor into a particular market – any of these 

might provide the opportunity for in-depth analysis. In each case the goal would be to 

understand what is unique about the role of the postal service, what could be done better, and 

what the various decision points and trade-offs might be. 

Conclusion and Blueprint for Moving Forward 

This project takes a broad scan of the many benefits of postal services and post offices, 

considering the perspectives of individual consumers, businesses, and nonprofit organizations. 

We provide a framework that categorizes benefits, beneficiaries, and measures. Research in 

community and economic development supports the concept of post offices as community 

assets and of the value of social connectedness and civic engagement, two social benefits 

frequently associated with postal services. And, research is ongoing to advance the field of 

social capital measurement. Considering the social value of the post, while challenging, is 

conceptually possible and consistent with other work on social valuation. 

We recommend the following next steps. First, that PRC develop a detailed research plan 

that frames the questions of interest and the comparisons to be made across providers, 

services, and/or locations. This requires careful consideration of the goals of the research. It is 

important to consider the time frame for analysis – that is, will the research address postal 

service benefits, costs and options in the next year, the next five years, or as far as ten years 

out? The research plan should be comprehensive, but modular, in that, depending on funding, 

research can proceed on some components and not wait until funding is secured for all 

components. Qualitative research can be costly, but with a range of options that can be 

considered, an approach can be selected that is consistent with research funds available. 
 

 A Framework for Considering the Social Value of Postal Services 

36 

Second, consider the following options for future research: 

1. Conduct descriptive analysis using existing data. 

2. Use these analyses to develop hypotheses and conduct empirical analysis. 

3. Develop scenarios and conduct cost effectiveness assessments. 

4. Design and conduct surveys of consumers, nonprofit organizations, and businesses. 

5. Use survey data to conduct willingness-to-pay analysis. 

6. Design and implement case study approaches for selected issues such as disaster 

response or post office closures. 

After the research plan is developed, item 1 on the list could begin right away, since it calls 

for using existing data. Items 2 through 4 can be initiated concurrently. Of these, items 2 and 3 

are less costly than item 4, which is more ambitious. However, a range of options are possible 

for items 2 through 4, depending on time and resources. Surveys will yield new and unique 

information that is needed for item 5, which would occur later in the research agenda. Case 

study approaches can be included at any point, based on opportune times to study unique 

situations or respond to timely questions. 
 

 A Framework for Considering the Social Value of Postal Services 

37 

APPENDIX A: List of Interviews and Contacts 

1. Mark Acton, Commissioner, Postal Regulatory Commission. Meeting on October 22, 2009 

(with Dan Blair and Paul Harrington). 

2. Dan Blair, Commissioner, Postal Regulatory Commission. Meeting on October 22, 2009 

(with Mark Acton and Paul Harrington). 

3. Robert Brinkman, Legislative Counsel, National League of Postmasters of the United States. 

Telephone interview on November 4, 2009. 

4. Larry Buc, President, SLS Consulting, Inc. Telephone interview on December 3, 2009. 

5. Don Cantriel, President, National Rural Letter Carriers Association. Telephone Interview on 

November 12, 2009. 

6. Anthony Conway, Executive Director, Alliance of Nonprofit Mailers. Telephone interview on 

November 24, 2009. 

7. Michael Crew, Director, Center for Research in Regulated Industries, Rutgers Business 

School. Telephone interview on December 22, 2009. 

8. Evelyn Darling, Executive Director, Fields Corner Main Street. E-mail message on 

December 18, 2009. 

9. Lee Fritschler, Professor of Public Policy, George Mason University. Telephone interview on 

November 24, 2009. 

10. Mary Anne Gibbons, General Counsel, United States Postal Service. Telephone interview 

on November 13, 2009. 

11. Vincent Giuliano, Senior Vice President of Government Relations, Valassis. Telephone 

interview on November 9, 2009. 

12. Ruth Goldway, Chairman, Postal Regulatory Commission. Meeting on October 13, 2009. 

13. Tony Hammond, Commissioner, Postal Regulatory Commission. Meeting on October 22, 

2009 (with Nanci Langley). 

14. Paul Harrington, Special Assistant to Commissioner Acton, Postal Regulatory Commission. 

Meeting on October 22, 2009 (with Mark Acton and Dan Blair). 

15. Wendy Hocking, Manager of Policy Strategies, United States Postal Service. Telephone 

interview on November 13, 2009. 

16. Joan Jefferson, Main Street Coordinator, Florida Main Street. E-mail message on December 

17, 2009. 

17. Richard Kielbowitz, Associate Professor of Communications, University of Washington. 

Telephone interview on November 10, 2009. 
 

 A Framework for Considering the Social Value of Postal Services 

38 

18. Linda Kingsley, Senior Vice President of Strategy and Transitions, United States Postal 

Service. Telephone interview on November 13, 2009. 

19. Nanci Langley, Vice Chairman, Postal Regulatory Commission. Meeting on October 22, 

2009 (with Tony Hammond). 

20. Robert Levi, Director of Government Relations, National Association of Postmasters of the 

United States. Telephone interview on November 12, 2009. 

21. Arik Levinson, Professor of Economics, Georgetown University. Telephone interview on 

December 15, 2009. 

22. Rafe Morrissey, Government Relations, Greeting Card Association. Telephone interview on 

January 29, 2010. 

23. Christine Pommerening, Research Assistant Professor of Public Policy, George Mason 

University. Telephone interview on December 1, 2009. 

24. Alan Robinson, Transportation and Postal Consultant, Direct Communications Group. E-mail 

message on December 8, 2009. 

25. Fredric Rolando, President, National Association of Letter Carriers. Telephone interview on 

December 1, 2009. 

26. Jeff Siegler, Director of Revitalization, Heritage Ohio. E-mail message on December 22, 

2009. 

27. Linda Sherry, Director of National Priorities, Consumer Action. Telephone interview on 

December 1, 2009. 

28. Sarah Shore, Assistant Director, Downtown Lee’s Summit Main Street, Inc. E-mail message 

on December 21, 2009. 

29. Kennedy Smith, former Director of Trust for Historic Preservation’s Main Street Center, 

currently Principal at The Community Land Use Group. Telephone interview on December 

17, 2009. 

30. Don Soifer, Executive Director, Consumer Postal Council. Telephone interview on 

November 6, 2009. 

31. Teresa Stack, President, The Nation Company. Telephone interview on November 5, 2009. 

32. David Straus, Postal Counsel, American Business Media. Telephone interview on November 

16, 2009. 

33. Paul Swartz, Director of Government Affairs, National Rural Letter Carriers Association. 

Telephone Interview on November 12, 2009. 

34. Phillip Tabbita, Negotiation Support Manager, American Postal Workers Union. Telephone 

interview on December 10, 2009. 
 

 A Framework for Considering the Social Value of Postal Services 

39 

35. Kevin Tarley, Assistant Director of Government Affairs, National Rural Letter Carriers 

Association. Telephone Interview on November 12, 2009. 
 

 A Framework for Considering the Social Value of Postal Services 

40 

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