The Relationship Between Labor Market Structure and Clergy Compensation in Protestant Denominations
Many recent economic studies have shown that traditional economic theory applies to nontraditional settings such as religious organizations. This paper contrasts two labor markets for clergy that result from different denominational polities to examine the impact of labor market structure on clergy compensation in Protestant denominations. Many Protestant churches operate autonomously and clergy and congregations negotiate contracts in a free market. However, in a distinct sub-group of Protestant denominations there is involvement by denominational hierarchy in order to raise the level of clergy compensation and benefits. Regression analysis using a unique, random sample of US clergy suggests that different labor market structures result in economically important and statistically significant differences in the distributions of clergy salaries and benefits. Copyright International Atlantic Economic Society 2008
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Volume (Year): 36 (2008)
Issue (Month): 1 (March)
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- Anderson, Gary M, 1988. "Mr. Smith and the Preachers: The Economics of Religion in the Wealth of Nations," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 1066-88, October.
- Ekelund, Robert B. & Hebert, Robert F. & Tollison, Robert D. & Anderson, Gary M. & Davidson, Audrey B., 1997. "Sacred Trust: The Medieval Church as an Economic Firm," OUP Catalogue, Oxford University Press, number 9780195103373.
- Allen, Douglas W., 1995. "Order in the church: A property rights approach," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 97-117, June.
- Charles Zech, 2001. "An agency analysis of church-pastor relations," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(6), pages 327-332.
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