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 and services 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 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.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2254.
Length: 39 pages
Date of creation: Aug 2006
Date of revision:
Publication status: published in: Annals of Public and Cooperative Economics, 2007, 78 (1), 57-86
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Other versions of this item:
- Michele Mosca & Marco Musella & Francesco Pastore, 2007. "Relational Goods, Monitoring And Non-Pecuniary Compensations In The Nonprofit Sector: The Case Of The Italian Social Services," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(1), pages 57-86, 03.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-08-26 (All new papers)
- NEP-LAB-2006-08-26 (Labour Economics)
- NEP-SOC-2006-08-26 (Social Norms & Social Capital)
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.:
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- 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.
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- Leonardo Becchetti & Stefano Castriota & Ermanno Tortia, 2013. "Productivity, wages and intrinsic motivations," Small Business Economics, Springer, vol. 41(2), pages 379-399, August.
- 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.
- Mathieu Narcy, 2009. "Les salariés du secteur associatif sont-ils davantage intrinsèquement motivés que ceux du secteur privé ?," Économie et Prévision, Programme National Persée, vol. 188(2), pages 81-99.
- Joseph Lanfranchi & Mathieu Narcy, 2013. "Overrepresentation of women in public and nonprofit sector jobs: Evidence from a French national survey," Post-Print halshs-00872954, HAL.
- 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).
- 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.
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