Relational Goods, Monitoring And Non-Pecuniary Compensations In The Nonprofit Sector: The Case Of The Italian Social Services
AbstractThis paper investigates the nonprofit wage gap suggesting a theoretical framework where, like in Akerlof (1984) , effort correlates not only with wages, but also with non-monetary compensations. These take the form of relational goods by-produced in the delivery of particular services. By paying higher non-pecuniary compensations, the nonprofit sector attracts intrinsically similarly skilled, but more motivated workers, able to provide in fact a similar (or potentially higher) level of effort than their counterparts in the forprofit sector. On an empirical ground, the paper provides a number of econometric tests that confirm the main predictions of the model in Italy's case. It adds to the available empirical literature by introducing in the analysis direct measures of non-pecuniary compensations and job satisfaction. Copyright 2007 The Authors Journal compilation � CIRIEC 2007.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Annals of Public and Cooperative Economics.
Volume (Year): 78 (2007)
Issue (Month): 1 (03)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1370-4788
Other versions of this item:
- Mosca, Michele & Musella, Marco & Pastore, Francesco, 2006. "Relational Goods, Monitoring and Non-Pecuniary Compensations in the Nonprofit Sector: The Case of the Italian Social Services," IZA Discussion Papers 2254, Institute for the Study of Labor (IZA).
- I00 - Health, Education, and Welfare - - General - - - General
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
- L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Weisbrod, Burton A, 1983. "Nonprofit and Proprietary Sector Behavior: Wage Differentials among Lawyers," Journal of Labor Economics, University of Chicago Press, vol. 1(3), pages 246-63, July.
- Handy, Femida & Katz, Eliakim, 1998. "The Wage Differential between Nonprofit Institutions and Corporations: Getting More by Paying Less?," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 246-261, June.
- Preston, Anne E, 1989. "The Nonprofit Worker in a For-Profit World," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 438-63, October.
- Goddeeris, John H, 1988. "Compensating Differentials and Self-selection: An Application to Lawyers," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 411-28, April.
- Michele Mosca & Francesco Pastore, 2009.
"Wage Effects of Recruitment Methods: The Case of the Italian Social Service Sector,"
AIEL Series in Labour Economics,
in: Marco Musella & Sergio Destefanis (ed.), Paid and Unpaid Labour in the Social Economy. An International Perspective, edition 1, chapter 8, pages 115-141
AIEL - Associazione Italiana Economisti del Lavoro.
- Mosca, Michele & Pastore, Francesco, 2008. "Wage Effects of Recruitment Methods: The Case of the Italian Social Service Sector," IZA Discussion Papers 3422, Institute for the Study of Labor (IZA).
- Lanfranchi, Joseph & Narcy, Mathieu & Larguem, Makram, 2009. "Would you accept this job? An evaluation of the decision utility of workers in the for-profit and nonprofit sectors," MPRA Paper 16359, University Library of Munich, Germany.
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