IDEAS home Printed from https://ideas.repec.org/a/uwp/jhriss/v28y1993i1p55-79.html
   My bibliography  Save this article

Wage Determination of Registered Nurses in Proprietary and Nonprofit Nursing Homes

Author

Listed:
  • A. G. Holtmann
  • Todd L. Idson

Abstract

This study explores why registered nurses employed in nonprofit nursing homes earn higher wages than those employed in proprietary facilities. Previous studies have explained this finding in a property rights context, where higher wages were posited to result from the weaker incentives for cost minimization accompanying nonprofit status. This paper tests an alternative explanation of sectoral wage differences which is predicated on the reason for the coexistence of for-profit and nonprofit firms in a given industry. Informational constraints concerning the quality of care are posited to cause the long-term health care market to fail to provide care at the upper levels of a quality of care continuum. Nonprofits are viewed as a response to this form of market failure, acting to fulfill customers demand for higher quality (and higher cost) long-term care, with attendant demand for higher quality nurses than in for-profit homes. Both the observed sectoral pattern in selectivity, and wage decompositions based on selectivity corrected wage regressions, call into question the property right explanation yet are consistent with an asymmetric information explanation.

Suggested Citation

  • A. G. Holtmann & Todd L. Idson, 1993. "Wage Determination of Registered Nurses in Proprietary and Nonprofit Nursing Homes," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 55-79.
    • Handle: RePEc:uwp:jhriss:v:28:y:1993:i:1:p:55-79
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/pdfplus/146088
    Download Restriction: A subscription is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jones, Cheryl Bland & Gates, Michael, 2004. "Gender-based wage differentials in a predominantly female profession: observations from nursing," Economics of Education Review, Elsevier, vol. 23(6), pages 615-631, December.
    2. Andrew C. Johnston & Carla Johnston, 2021. "Is Compassion a Good Career Move?: Nonprofit Earnings Differentials from Job Changes," Journal of Human Resources, University of Wisconsin Press, vol. 56(4), pages 1226-1253.
    3. Robert Drago, 1994. "The Effects of Job and Housing Location on Race/Gender Wage Differentials in Milwaukee: Testing the `Network Hypothesis'," Labor and Demography 9404001, University Library of Munich, Germany.
    4. Barigozzi, Francesca & Burani, Nadia, 2016. "Competition and screening with motivated health professionals," Journal of Health Economics, Elsevier, vol. 50(C), pages 358-371.
    5. Patrick Francois, 2007. "Making a difference," RAND Journal of Economics, RAND Corporation, vol. 38(3), pages 714-732, September.
    6. Noguchi, Haruko & Shimizutani, Satoshi, 2007. "Nonprofit/for-profit status and earning differentials in the Japanese at-home elderly care industry: Evidence from micro-level data on home helpers and staff nurses," Journal of the Japanese and International Economies, Elsevier, vol. 21(1), pages 106-120, March.
    7. Paula James, 2002. "Do Non-profit Enterprises Pay More For Their Labor Inputs? An Examination of Hospital Behavior," Working Papers 02-07, New York University, Leonard N. Stern School of Business, Department of Economics.
    8. Barry T. Hirsch & David A. Macpherson & Anne E. Preston, 2018. "Nonprofit wages: theory and evidence," Chapters, in: Bruce A. Seaman & Dennis R. Young (ed.), Handbook of Research on Nonprofit Economics and Management, chapter 8, pages 146-179, Edward Elgar Publishing.
    9. Shimizutani, Satoshi & Suzuki, Wataru, 2007. "Quality and efficiency of home help elderly care in Japan: Evidence from micro-level data," Journal of the Japanese and International Economies, Elsevier, vol. 21(2), pages 287-301, June.
    10. 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.
    11. 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.
    12. Matyja, Małgorzata, 2017. "Zasoby pracy w polskich gospodarstwach z perspektywy pracowniczych spółdzielni rolniczych," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 3(176).
    13. Markus Kitzmueller & Jay Shimshack, 2012. "Economic Perspectives on Corporate Social Responsibility," Journal of Economic Literature, American Economic Association, vol. 50(1), pages 51-84, March.
    14. Edward Schumacher, 2009. "Does Public or Not-for-Profit Status Affect the Earnings of Hospital Workers?," Journal of Labor Research, Springer, vol. 30(1), pages 9-34, March.
    15. SHIMIZUTANI Satoshi & SUZUKI Wataru, 2002. "The Quality and Efficiency of At-Home Long-term Care in Japan: Evidence from Micro-level Data," ESRI Discussion paper series 018, Economic and Social Research Institute (ESRI).
    16. Katsuyoshi Nakazawa, 2013. "Differential market entry determinants for for-profit and nonprofit long-term care providers," MAGKS Papers on Economics 201313, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    17. Jones, Daniel B., 2015. "The supply and demand of motivated labor: When should we expect to see nonprofit wage gaps?," Labour Economics, Elsevier, vol. 32(C), pages 1-14.
    18. Mathieu Narcy, 2011. "Would nonprofit workers accept to earn less? Evidence from France," Applied Economics, Taylor & Francis Journals, vol. 43(3), pages 313-326.
    19. Astrid Haider & Ulrike Schneider, 2010. "The Influence Of Volunteers, Donations And Public Subsidies On The Wage Level Of Nonprofit Workers: Evidence From Austrian Matched Data," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 81(1), pages 1-20, March.
    20. Christopher J. Ruhm & Carey Borkoski, 2003. "Compensation in the Nonprofit Sector," Journal of Human Resources, University of Wisconsin Press, vol. 38(4).
    21. Hirth, Richard A., 1999. "Consumer information and competition between nonprofit and for-profit nursing homes," Journal of Health Economics, Elsevier, vol. 18(2), pages 219-240, April.
    22. repec:adr:anecst:y:2010:i:99-100:p:04 is not listed on IDEAS
    23. Patrick Francois, 2004. "'Making a Difference': Labor Donations in the Production of Public Goods," The Centre for Market and Public Organisation 04/093, The Centre for Market and Public Organisation, University of Bristol, UK.
    24. Pudney, Stephen & Shields, Michael A., 1999. "Gender and Racial Discrimination in Pay and Promotion for NHS Nurses," IZA Discussion Papers 85, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:jhriss:v:28:y:1993:i:1:p:55-79. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://jhr.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.