Wilson said the independent review will look at the challenges and benefits of young people committing to full-time social action - classed as more than 16 hours per week for at least six months.
A chair and advisory panel - which will include experts from the private and voluntary sectors - will be announced in the new year and is expected to make recommendations to the minister by October 2017.
The panel will look at how to increase participation in full-time social action by reviewing the opportunities and barriers faced by organisations supporting young people.
Wilson said: "By helping others, young people can also transform their own lives.
"Full-time volunteering can provide meaning and purpose, as well as allowing young people to gain the skills they need to transition into full-time work or study.
"I want to make sure that we encourage as many young people as possible to get involved and make a difference in their communities, building a society for everyone."
The independent review has been welcomed across social media.
Sophie Livingstone, chief executive of City Year UK, tweeted that she is "delighted" that a review is to take place.
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