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Relational Goods, Monitoring and Non-Pecuniary Compensations in the Nonprofit Sector: The Case of the Italian Social Services

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Author Info

  • Mosca, Michele

    ()
    (University of Naples Federico II)

  • Musella, Marco

    ()
    (University of Naples Federico II)

  • Pastore, Francesco

    ()
    (University of Naples II)

Abstract

This 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 Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2254.

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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
Handle: RePEc:iza:izadps:dp2254

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Related research

Keywords: efficiency wages; non-profit organisations; job satisfaction; wage determination; relational goods;

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References

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  1. 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.
  2. 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.
  3. 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.
  4. Benedetto Gui, 2000. "Beyond Transactions: On the Interpersonal Dimension of Economic Reality," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 71(2), pages 139-169, 06.
  5. 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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Citations

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Cited by:
  1. Maurizio Carpita & Silvia Golia, 2012. "Measuring the quality of work: the case of the Italian social cooperatives," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(6), pages 1659-1685, October.
  2. Leonardo Becchetti & Stefano Castriota & Ermanno Tortia, 2013. "Productivity, wages and intrinsic motivations," Small Business Economics, Springer, vol. 41(2), pages 379-399, August.
  3. 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.
  4. 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.
  5. 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.
  6. 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).

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