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Where is the Warm Glow? Donated Labour and Nonprofit Wage Differentials in the Health and Social Work Industries

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Author Info

  • Rutherford, Alasdair

Abstract

The "Warm Glow" theory of worker motivation in nonprofit organisations predicts that wages will be lower in the voluntary sector than for equivalent workers in the private and public sectors. Empirical findings, however, are mixed. Focussing on the Health & Social Work industries, we examine differences in levels of unpaid overtime between the sectors to test for the existence of a warm-glow effect. Although levels of unpaid overtime are significantly higher in voluntary sector, we find that this is insufficient to explain the wage premiums earned in this sector.

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File URL: http://hdl.handle.net/1893/1663
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Bibliographic Info

Paper provided by University of Stirling, Division of Economics in its series Stirling Economics Discussion Papers with number 2009-20.

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Date of creation: Sep 2009
Date of revision:
Handle: RePEc:stl:stledp:2009-20

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Postal: Division of Economics, University of Stirling, Stirling, Scotland FK9 4LA
Phone: +44 (0)1786 467473
Fax: +44 (0)1786 467469
Web page: http://www.econ.stir.ac.uk/
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Related research

Keywords: Nonprofit; Warm Glow; Wage differentials; Working Hours; Unpaid Overti me;

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  1. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
  2. Bell, D. & Hart, R.A., 1998. "Unpaid Work," Working Papers Series 9803, University of Stirling, Division of Economics.
    • Bell, David N F & Hart, Robert A, 1999. "Unpaid Work," Economica, London School of Economics and Political Science, vol. 66(262), pages 271-90, May.
  3. Bender, Keith A, 1998. " The Central Government-Private Sector Wage Differential," Journal of Economic Surveys, Wiley Blackwell, vol. 12(2), pages 177-220, April.
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  5. H. Naci Mocan & Erdal Tekin, 2000. "Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data of Child Care Workers," NBER Working Papers 7977, National Bureau of Economic Research, Inc.
  6. 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.
  7. Timothy Besley & Maitreesh Ghatak, 2005. "Competition and Incentives with Motivated Agents," American Economic Review, American Economic Association, vol. 95(3), pages 616-636, June.
  8. 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.
  9. Richard Disney & Amanda Gosling, 1998. "Does it pay to work in the public sector?," Fiscal Studies, Institute for Fiscal Studies, vol. 19(4), pages 347-374, November.
  10. Leete, Laura, 2001. "Whither the Nonprofit Wage Differential? Estimates from the 1990 Census," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 136-70, January.
  11. David N. F. Bell & Robert A. Hart, 2003. "Wages, hours, and overtime premia: Evidence from the British labor market," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(3), pages 470-480, April.
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