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Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data on Child Care Workers

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Author Info
H. Naci Mocan (University of Colorado at Denver and NBER)
Erdal Tekin (Andrew Young School of Policy Studies, Georgia State University and NBER)

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Abstract

This paper uses a rich employer-employee matched data set to investigate the existence and the extent of nonprofit and part-time wage and compensation differentials in child care. The empirical strategy adjusts for workers' self-selection into the for-profit or the nonprofit sector and into full-time or part-time work, as well as for unobserved worker heterogeneity, using a discrete factor model. We find differences between the regimes (full-time for-profit, full-time nonprofit, part-time for-profit, part-time nonprofit) in the manner in which human capital characteristics of the workers are rewarded. There is substantial variation in wages as a function of employee characteristics, and there is variation in wages within sectors. The results indicate that part-time jobs are good jobs in center-based child care, and there exist nonprofit wage and compensation premia, which support the property-rights hypothesis. Copyright (c) 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 85 (2003)
Issue (Month): 1 (01)
Pages: 38-50
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Handle: RePEc:tpr:restat:v:85:y:2003:i:1:p:38-50

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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.:
  1. David M. Blau & H. Naci Mocan, 1999. "The Supply of Quality in Child Care Centers," NBER Working Papers 7225, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Charles Brown & James L. Medoff, 1989. "The Employer Size-Wage Effect," NBER Working Papers 2870, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 104-146, February. [Downloadable!] (restricted)
  4. Arabmazar, Abbas & Schmidt, Peter, 1982. "An Investigation of the Robustness of the Tobit Estimator to Non-Normality," Econometrica, Econometric Society, vol. 50(4), pages 1055-63, July. [Downloadable!] (restricted)
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(explanations, 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.)

  1. Wolf, Elke, 2001. "Comparing the part-time wage gap in Germany and the Netherlands," ZEW Discussion Papers 01-18, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  2. Patrick Francois, 2002. "Not-for-profit Provision of Public Services," The Centre for Market and Public Organisation 02/060, Department of Economics, University of Bristol, UK. [Downloadable!]
    Other versions:
  3. Mocan, H. Naci & Tekin, Erdal, 2003. "Guns, Drugs and Juvenile Crime: Evidence from a Panel of Siblings and Twins," IZA Discussion Papers 932, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Jed DeVaro & Dana Samuelson, 2005. "Why Are Promotions Less Likely in Nonprofit Firms?," Labor and Demography 0501010, EconWPA. [Downloadable!]
  5. Erdal Tekin, 2004. "Single Mothers Working at Night: Standard Work, Child Care Subsidies, and Implications for Welfare Reform," NBER Working Papers 10274, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Francois, Patrick, 2005. "Making A Difference," CEPR Discussion Papers 5158, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Pierre Koning & Joëlle Noailly & Sabine Visser, 2007. "Do Not-For-Profits Make a Difference in Social Services? A Survey Study," De Economist, Springer, vol. 155(3), pages 251-270, September. [Downloadable!] (restricted)
  8. Haruko Noguchi & Satoshi Shimizutani, 2005. "Nonprofit/For-Profit Status and Earning Differentials in the Japanese At-home Elderly Care Industry: Evidence from Micro-level Data on Home Helpers and Staff Nurses," Hi-Stat Discussion Paper Series d04-76, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
    Other versions:
  9. Hirsch, Barry T., 2004. "Why Do Part-Time Workers Earn Less? The Role of Worker and Job Skills," IZA Discussion Papers 1261, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  10. Josse Delfgaauw & Robert Dur, 2008. "Managerial Talent, Motivation, and Self-Selection into Public Management," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  11. Patrick Francois, 2004. "'Making a Difference': Labor Donations in the Production of Public Goods," The Centre for Market and Public Organisation 04/093, Department of Economics, University of Bristol, UK. [Downloadable!]
  12. Colin Rowat & Paul Seabright, 2004. "Intermediation by aid agencies," Industrial Organization 0412007, EconWPA. [Downloadable!]
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  13. Pierre Koning & Joëlle Noailly & Sabine Visser, 2007. "Do non-profits make a difference?," CPB Documents 142, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  14. Joëlle Noailly & Sabine Visser & Paul Grout, 2007. "The impact of market forces on the provision of childcare: Insights from the 2005 Childcare Act in the Netherlands," CPB Memoranda 176, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  15. Ronelle Burger & Trudy Owens, . "Promoting transparency in the NGO sector: Examining the availability and reliability of self-reported data," Discussion Papers 08/11, University of Nottingham, CREDIT. [Downloadable!]
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