IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this book chapter or follow this series

Wage Effects of Recruitment Methods: The Case of the Italian Social Service Sector

In: Paid and Unpaid Labour in the Social Economy. An International Perspective

  • Michele Mosca

    (Università di Napoli Federico II)

  • Francesco Pastore

    (Seconda Università di Napoli)

This essay analyses the role of different recruitment channels, and of informal networks in particular, on wage structures across various organization types in the Italian social service sector. While the impact of recruitment methods on wages has been addressed in several previous contributions, none of them focuses on social services. Comparison of outcomes across organization types within the same sector is in itself another novelty, as compared to previous studies that generally focus on differences across sectors or, more recently, across countries. The main findings are that nonprofit organizations prefer informal recruitment methods to better select the most motivated workers, namely those workers who share the nonprofit mission. Furthermore the impact of informal contacts on the wage structure explains much of the unobserved wage differentials across organization type.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://link.springer.com/chapter/10.1007/978-3-7908-2137-6_8
Download Restriction: external link

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

as
in new window

This chapter was published in:
  • Marco Musella & Sergio Destefanis (ed.), 2009. "Paid and Unpaid Labour in the Social Economy. An International Perspective," AIEL Series in Labour Economics, AIEL - Associazione Italiana Economisti del Lavoro, number 03.
  • This item is provided by AIEL - Associazione Italiana Economisti del Lavoro in its series AIEL Series in Labour Economics with number 03-08.
    Handle: RePEc:ail:chapts:03-08
    Contact details of provider: Postal: Dipartimento di Giurisprudenza, Seconda Universitá di Napoli, Via Mazzocchi 5, 81055 S. Maria Capua Vetere (CE)
    Phone: +39 0823 275530
    Web page: http://www.aiel.it/
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Yannis M. Ioannides & Linda Datcher Loury, 2002. "Job Information Networks, Neighborhood Effects and Inequality," Discussion Papers Series, Department of Economics, Tufts University 0217, Department of Economics, Tufts University.
    2. Francesco Pastore, 2009. "School-to-Work Transitions in Mongolia," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(2), pages 245-264, December.
    3. Blau, David M & Robins, Philip K, 1990. "Job Search Outcomes for the Employed and Unemployed," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 637-55, June.
    4. Simon, Curtis J & Warner, John T, 1992. "Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 306-30, July.
    5. 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, 03.
    6. Cahuc, Pierre & Fontaine, François, 2002. "On the Efficiency of Job Search with Social Networks," CEPR Discussion Papers 3511, C.E.P.R. Discussion Papers.
    7. Leete, Laura, 2000. "Wage equity and employee motivation in nonprofit and for-profit organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 43(4), pages 423-446, December.
    8. Kugler, Adriana D., 2002. "Employee Referrals and Efficiency Wages," CEPR Discussion Papers 3682, C.E.P.R. Discussion Papers.
    9. Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank.
    10. Maarten Goos & Anna Salomons, 2007. "Dangerous liaisons: a social network model for the gender wage gap," Center for Economic Studies - Discussion papers ces0722, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
    11. Samuel Bentolila & Claudio Michelacci & Javier Suarez, 2010. "Social Contacts and Occupational Choice," Economica, London School of Economics and Political Science, vol. 77(305), pages 20-45, 01.
    12. Linda Datcher Loury, 2006. "Some Contacts Are More Equal than Others: Informal Networks, Job Tenure, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 299-318, April.
    13. Bull, Clive & Ornati, Oscar & Tedeschi, Piero, 1987. "Search, Hiring Strategies, and Labor Market Intermediaries," Journal of Labor Economics, University of Chicago Press, vol. 5(4), pages S1-17, October.
    14. 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 411-28, April.
    15. Calvó-Armengol, Antoni & Zenou, Yves, 2003. "Job Matching, Social Network and Word-of-Mouth Communication," IZA Discussion Papers 771, Institute for the Study of Labor (IZA).
    16. Gregg, Paul & Wadsworth, Jonathan, 1996. "How Effective Are State Employment Agencies? Jobcentre Use and Job Matching in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(3), pages 443-67, August.
    17. Osberg, Lars, 1993. "Fishing in Different Pools: Job Search Strategies and Job-Finding Success in Canada in the Early 1980s," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 348-86, April.
    18. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    19. John T. Addison & Pedro Portugal, 1998. "Job Search Methods and Outcomes," Working Papers w199808, Banco de Portugal, Economics and Research Department.
    20. Akerlof, George A, 1984. "Gift Exchange and Efficiency-Wage Theory: Four Views," American Economic Review, American Economic Association, vol. 74(2), pages 79-83, May.
    21. Linda Loury, 2006. "Job Search Among Informal Contacts," Discussion Papers Series, Department of Economics, Tufts University 0604, Department of Economics, Tufts University.
    22. Mauro Sylos Labini, 2004. "Social Networks and Wages: It's All About Connections!," LEM Papers Series 2004/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    23. Holzer, Harry J, 1988. "Search Method Use by Unemployed Youth," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 1-20, January.
    24. Saloner, Garth, 1985. "Old Boy Networks as Screening Mechanisms," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 255-67, July.
    25. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-18, December.
    26. Carlos Pestana Barros, 2006. "Earnings, Schooling and Social Capital of Cooperative Managers," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(1), pages 1-20, 03.
    27. 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.
    28. Mortensen, D. T. & Vishwanath, T., 1995. "Personal contacts and earnings: It is who you know!," Labour Economics, Elsevier, vol. 2(1), pages 103-104, March.
    29. Roper, Stephen, 1988. "Recruitment Methods and Vacancy Duration," Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(1), pages 51-64, February.
    30. 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.
    31. 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.
    32. Jonathan M. Thomas, 1997. "Public employment agencies and unemployment spells: Reconciling the experimental and nonexperimental evidence," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(4), pages 667-683, July.
    33. Antoninis, Manos, 2006. "The wage effects from the use of personal contacts as hiring channels," Journal of Economic Behavior & Organization, Elsevier, vol. 59(1), pages 133-146, January.
    34. Michele Pellizzari, 2010. "Do Friends and Relatives Really Help in Getting a Good Job?," ILR Review, Cornell University, ILR School, vol. 63(3), pages 494-510, April.
    35. David Margolis & Véronique Simonnet, 2002. "Educational Track, Networks and Labor Market Outcomes," Working Papers 2002-60, Centre de Recherche en Economie et Statistique.
    36. Jed Devaro, 2005. "Employer Recruitment Strategies and the Labor Market Outcomes of New Hires," Economic Inquiry, Western Economic Association International, vol. 43(2), pages 263-282, April.
    37. 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.
    38. Marmaros, David & Sacerdote, Bruce, 2002. "Peer and social networks in job search," European Economic Review, Elsevier, vol. 46(4-5), pages 870-879, May.
    39. Eric Delattre & Mareva Sabatier, 2007. "Social Capital and Wages: An Econometric Evaluation of Social Networking's Effects," LABOUR, CEIS, vol. 21(2), pages 209-236, 06.
    40. Christopher J. Ruhm & Carey Borkoski, 2003. "Compensation in the Nonprofit Sector," Journal of Human Resources, University of Wisconsin Press, vol. 38(4).
    41. Harry J. Holzer, 1987. "Job search by employed and unemployed youth," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 40(4), pages 601-611, July.
    42. Lucifora, Claudio & Comi, Simona & Brunello, Giorgio, 2000. "The Returns to Education in Italy: A New Look at the Evidence," IZA Discussion Papers 130, Institute for the Study of Labor (IZA).
    43. Matt Jackson, 2003. "The Effects of Social Networks on Employment and Inequality," Theory workshop papers 658612000000000032, UCLA Department of Economics.
    44. Concetta, MENDOLICCHIO, 2006. "A Disaggregate Analysis of Private Returns to Education in Italy," Discussion Papers (ECON - Département des Sciences Economiques) 2006054, Université catholique de Louvain, Département des Sciences Economiques.
    45. Goldberg, Matthew S, 1982. "Discrimination, Nepotism, and Long-Run Wage Differentials," The Quarterly Journal of Economics, MIT Press, vol. 97(2), pages 307-19, May.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ail:chapts:03-08. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lia Ambrosio)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.