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The Nonprofit Worker in a For-Profit World

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Author Info
Preston, Anne E
Abstract

This article investigates the experience of white-collar workers in nonprofit firms. The theoretical model of the nonprofit labor market suggests that workers supply labor to nonprofit organizations at lower than market wages in return for the opportunity to provide goods with positive social externalities. Average nonprofit wage differentials of approximately -0.20 and -0.05 are estimated for managers and professionals and for clerical and sales workers, respectively, in two national worker data sets. Further research is needed for more conclusive evidence concerning the possibility that the estimated differential may reflect low-quality workers selecting work in the nonprofit sector. Copyright 1989 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 7 (1989)
Issue (Month): 4 (October)
Pages: 438-63
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Handle: RePEc:ucp:jlabec:v:7:y:1989:i:4:p:438-63

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  1. Michele Mosca & Marco Musella & Francesco Pastore, 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). [Downloadable!]
    Other versions:
  2. Lawrence Katz & Alan Krueger, 1991. "Changes in the Structure of Wages in the Public and Private Sectors," Working Papers 662, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  3. 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!]
  4. Josse Delfgaauw & Robert Dur, 2004. "Incentives and Workers' Motivation in the Public Sector," Tinbergen Institute Discussion Papers 04-060/1, Tinbergen Institute. [Downloadable!]
  5. repec:fth:prinin:282 is not listed on IDEAS
  6. Jed DeVaro & Dana Samuelson, 2005. "Why Are Promotions Less Likely in Nonprofit Firms?," Labor and Demography 0501010, EconWPA. [Downloadable!]
  7. Josse Delfgaauw & Robert A.J. Dur, 2002. "Signaling and Screening of Workers' Motivation," Tinbergen Institute Discussion Papers 02-050/3, Tinbergen Institute, revised 04 Mar 2005. [Downloadable!]
  8. Colin Rowat & Paul Seabright, 2004. "Intermediation by aid agencies," Industrial Organization 0412007, EconWPA. [Downloadable!]
    Other versions:
  9. Josse Delfgaauw & Robert A. J. Dur, 2003. "Signaling and Screening of Workers' Motivation," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  10. Ermanno Tortia, 2006. "Worker satisfaction and perceived fairness: result of a survey in public, and non-profit organizations," Department of Economics Working Papers 0604, Department of Economics, University of Trento, Italia. [Downloadable!]
  11. H. Naci Mocan & Deborah Viola, 1997. "The Determinants of Child Care Workers' Wages and Compensation: Sectoral Differences, Human Capital, Race, Insiders and Outsiders," NBER Working Papers 6328, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Richard Arnould & Marianne Bertrand & Kevin F. Hallock, 2000. "Does Managed Care Change the Mission of Nonprofit Hospitals? Evidence From the Managerial Labor Market," NBER Working Papers 7924, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Francois, Patrick, 2005. "Making A Difference," CEPR Discussion Papers 5158, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  14. Monica Auteri & Richard Wagner, 2007. "The Organizational Architecture of Nonprofit Governance: Economic Calculation Within an Ecology of Enterprises," Public Organization Review, Springer, vol. 7(1), pages 57-68, March. [Downloadable!] (restricted)
  15. 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. [Downloadable!]
  16. Josse Delfgaauw & Robert A. J. Dur, 2004. "Incentives and Workers’ Motivation in the Public Sector," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
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