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

In: Paid and Unpaid Labour in the Social Economy

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  • Michele Mosca

    (University of Napoli Federico II)

  • Francesco Pastore

    (University of Napoli Federico II)

Abstract

This essay analyzes 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.

Suggested Citation

  • 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, chapter 0, pages 115-141, Springer.
  • Handle: RePEc:spr:aiechp:978-3-7908-2137-6_8
    DOI: 10.1007/978-3-7908-2137-6_8
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    Cited by:

    1. Valentina Meliciani & Debora Radicchia, 2014. "Informal Network, Spatial Mobility and Overeducation in the Italian Labour Market," Working Papers 19, Birkbeck Centre for Innovation Management Research, revised Nov 2014.
    2. Valentina Meliciani & Debora Radicchia, 2016. "Informal networks, spatial mobility and overeducation in the Italian labour market," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(2), pages 513-535, March.
    3. Oyer, Paul & Schaefer, Scott, 2011. "Personnel Economics: Hiring and Incentives," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 20, pages 1769-1823, Elsevier.
    4. Van Wolleghem, Pierre Georges & De Angelis, Marina & Scicchitano, Sergio, 2019. "Education-occupation mismatch of migrants in the Italian labour market: the effect of social networks," GLO Discussion Paper Series 398, Global Labor Organization (GLO).
    5. Bilyk Olga & Sheron Iuliia, 2012. "Do informal networks matter in the Ukrainian labor market?," EERC Working Paper Series 12/11e, EERC Research Network, Russia and CIS.

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    More about this item

    Keywords

    Nonprofit Organization; Wage Differential; Public Organization; Wage Premium; Recruitment Method;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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