Relational Goods, Monitoring and Non-Pecuniary Compensations in the Nonprofit Sector: The Case of the Italian Social Services
This paper investigates the nonprofit wage gap suggesting a theoretical framework where, like in Akerlof (1984), effort correlates not only with wages, but also with non-monetary compensations. These take the form of relational goods and services by-produced in the delivery of particular services. By paying higher non-pecuniary compensations, the nonprofit sector attracts intrinsically similarly skilled, but more motivated workers, able to provide in fact a higher level of effort than their counterparts in the forprofit sector. On an empirical ground, the paper provides a number of econometric tests that confirm the main predictions of the model in Italy’s case. It adds to the available empirical literature by introducing in the analysis direct measures of non-pecuniary compensations and job satisfaction.
|Date of creation:||Aug 2006|
|Date of revision:|
|Publication status:||published in: Annals of Public and Cooperative Economics, 2007, 78 (1), 57-86|
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- 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.
- Benedetto Gui, 2000. "Beyond Transactions: On the Interpersonal Dimension of Economic Reality," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 71(2), pages 139-169, 06.
- Weisbrod, Burton A, 1983. "Nonprofit and Proprietary Sector Behavior: Wage Differentials among Lawyers," Journal of Labor Economics, University of Chicago Press, vol. 1(3), pages 246-63, July.
- 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.
- 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.
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