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The Relationship Between Labor Market Structure and Clergy Compensation in Protestant Denominations

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  • Becky Haney

Abstract

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

Suggested Citation

  • Becky Haney, 2008. "The Relationship Between Labor Market Structure and Clergy Compensation in Protestant Denominations," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(1), pages 65-75, March.
    • Handle: RePEc:kap:atlecj:v:36:y:2008:i:1:p:65-75
    DOI: 10.1007/s11293-007-9090-x
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    References listed on IDEAS

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    1. 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.
    2. 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 1066-1088, October.
    3. 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.
    4. 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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    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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