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Nonprofit/For-profit Facility and Difference of Wage Distribution: Evidence from the Japanese elderly care industry

Author

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  • Yutaka ITO
  • Keisuke KAWATA
  • Ting YIN

Abstract

This paper provides new estimation results for the impacts of operator types, nonprofit or for-profit, on earnings distribution by using employee-employer matched data in the Japanese elderly care sector. The ordinary least squares (OLS) and quantile regression results show that even if workers' and operators' basic characteristics are controlled, we can observe a nonprofit premium on average and in lower quantiles. However, in higher quantiles, we observe a negative premium (penalty) of nonprofit operators. Additionally, average and quantile decomposition results represent that, on average and in each quantile, a large part of a nonprofit premium can be explained by the difference of observable characteristics, especially the license acquisition rate and worker's tenure. The quantile decomposition results additionally show that a larger part of earnings gap in high quantiles can be explained by the difference of tenure than in lower quantiles.

Suggested Citation

  • Yutaka ITO & Keisuke KAWATA & Ting YIN, 2015. "Nonprofit/For-profit Facility and Difference of Wage Distribution: Evidence from the Japanese elderly care industry," Discussion papers 15073, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:15073
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    References listed on IDEAS

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