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Wage differentials in social enterprises

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  • Becchetti, Leonardo

    () (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Castriota, Stefano

    () (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

Abstract

In Italy social enterprises include more than 7,000 institutions with around 250,000 workers serving more than three million people, a big share of which disadvantaged. Using the ICSI 2007 survey conducted by a pool of Italian universities on a representative sample of social enterprises, we analyze the determinants of nominal and real wages (adjusted for the cost of living in the area of residence). Our two main findings show that: i) low wages and absence of “direct” education premia make it hard to attract (beyond intrinsic motivations) young talented workers in this sector even though indirect premia in terms of higher probability of becoming manager exist; ii) cooperative wage differentials are sensitive to regional disparities in PPP even though they do not fully compensate for them: nominal wages are higher in Northern Italy but, after adjusting for the cost of living, they become higher in the South.

Suggested Citation

  • Becchetti, Leonardo & Castriota, Stefano, 2010. "Wage differentials in social enterprises," AICCON Working Papers 68-2010, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    • Handle: RePEc:ris:aiccon:2010_068
    Note: Reference authors: Leonardo Becchetti, Department of Economics, Università Tor Vergata, Via Columbia 2, 00133 Roma, becchetti@economia.uniroma2.it; Stefano Castriota, Department of Economics, Università di Trento and Euricse, Via Inama 5, 38120 Trento, stefano.castriota@unitn.it.
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    1. Marco Alfò & Giovanni Trovato, 2004. "Semiparametric mixture models for multivariate count data, with application," Econometrics Journal, Royal Economic Society, vol. 7(2), pages 426-454, December.
    2. Sophia Rabe-Hesketh & Anders Skrondal & Andrew Pickles, 2004. "GLLAMM Manual," U.C. Berkeley Division of Biostatistics Working Paper Series 1160, Berkeley Electronic Press.
    3. Marco Van Herpen & Kees Cools & Mirjam Van Praag, 2006. "Wage Structure and the Incentive Effects of Promotions," Kyklos, Wiley Blackwell, vol. 59(3), pages 441-459, August.
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    Keywords

    Social enterprises; wage differentials; education; wage premium; motivations;

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