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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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Listed:
  • Michele Mosca
  • Marco Musella
  • Francesco Pastore

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 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 similar (or potentially 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. Copyright 2007 The Authors Journal compilation © CIRIEC 2007.

Suggested Citation

  • 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, March.
  • Handle: RePEc:bla:annpce:v:78:y:2007:i:1:p:57-86
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    References listed on IDEAS

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    1. 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 246-263, July.
    2. 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.
    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 411-428, 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, June.
    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 438-463, October.
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    Cited by:

    1. repec:liu:liucej:v:14:y:2017:i:2:p:303-329 is not listed on IDEAS
    2. Federica VIGANO & Andrea SALUSTRI, 2015. "Matching profit and Non-profit Needs: How NPOs and Cooperative Contribute to Growth in Time of Crisis. A Quantitative Approach," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(1), pages 157-178, March.
    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. 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.
    5. Joseph Lanfranchi & Mathieu Narcy & Makram Larguem, 2010. "Shedding new light on intrinsic motivation to work: evidence from a discrete choice experiment," Kyklos, Wiley Blackwell, vol. 63(1), pages 75-93, February.
    6. Mathieu Narcy, 2009. "Les salariés du secteur associatif sont-ils davantage intrinsèquement motivés que ceux du secteur privé ?," Economie & Prévision, La Documentation Française, vol. 0(2), pages 81-99.
    7. Astrid SIMILON, 2015. "Self-Regulation Systems for NPO Coordination: Strenghts and Weaknesses of Label and Umbrella Mechanisms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(1), pages 89-104, March.
    8. Leonardo Becchetti & Stefano Castriota & Ermanno Tortia, 2013. "Productivity, wages and intrinsic motivations," Small Business Economics, Springer, vol. 41(2), pages 379-399, August.
    9. 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.
    10. Stijn VAN PUYVELDE & Marc JEGERS, 2016. "Heterogeneity and self-selection into nonprofit management," CIRIEC Working Papers 1603, CIRIEC - Université de Liège.
    11. Joseph Lanfranchi & Mathieu Narcy, 2013. "Female Overrepresentation in Public and Nonprofit Sector Jobs
      [Evidence From a French National Survey]
      ," Post-Print halshs-01081038, HAL.
    12. Román-Calderón, Juan Pablo & Battistelli, Adalgisa & Vargas-Saenz, Mario, 2014. "Antecedentes das intenções da rotatividade nas cooperativas colombianas," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 54(6), November.
    13. Joseph LANFRANCHI & Mathieu NARCY, 2008. "Différence De Satisfaction Dans L'Emploi Entre Secteurs À But Lucratif Et À But Non Lucratif: Le Rôle Joué Par Les Caractéristiques D'Emploi," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(2), pages 323-368, June.
    14. 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.
    15. repec:spr:soinre:v:135:y:2018:i:2:d:10.1007_s11205-016-1519-7 is not listed on IDEAS
    16. Sergio Destefanis & Ornella W. Maietta, 2015. "Property rights and efficiency in the care sector. Evidence from Italy," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 4(2), pages 98-115, February.
    17. Andrea Salustri & Federica Viganò, 2015. "Human development and well-being during the great recession. The non-profit sector as a capability enhancing workplace," BEMPS - Bozen Economics & Management Paper Series BEMPS27, Faculty of Economics and Management at the Free University of Bozen.

    More about this item

    JEL classification:

    • 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; Social Entrepreneurship
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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