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Compensation in the Nonprofit Sector

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  • Christopher J. Ruhm
  • Carey Borkoski

Abstract

We investigate the determinants of pay in the nonprofit sector using data for 25–55 year olds from the 1994– 88 Current Population Survey Outgoing Rotation Groups. Our results are consistent with the hypothesis that compensation is primarily determined in competitive markets without ‘‘labor donations’ ’ to nonprofit employers. One implication is that nonprofit workers receive virtually the same wages as observationally equivalent employees in similar positions with profit-seeking enterprises. We cannot rule out the possibility of nonprofit penalties or premiums for selected groups; however, the differentials are generally small and competition appears to play a dominant role in nonprofit wage setting.

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File URL: http://jhr.uwpress.org/cgi/reprint/XXXVIII/4/992
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 38 (2003)
Issue (Month): 4 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:38:y:2003:i:4:p992-1021

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Web page: http://jhr.uwpress.org/

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  1. Barbara R. Bergmann, 1974. "Occupational Segregation, Wages and Profits When Employers Discriminate by Race or Sex," Eastern Economic Journal, Eastern Economic Association, vol. 1(2), pages 103-110, April.
  2. George J. Borjas & H. E. Frech III & Paul B. Ginsburg, 1983. "Property Rights and Wages: The Case of Nursing Homes," Journal of Human Resources, University of Wisconsin Press, vol. 18(2), pages 231-246.
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