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On the Up: Voluntary Sector Wages in the UK 1998 - 2007

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  • Rutherford, Alasdair

Abstract

Since 1997 the UK Government has sought to expand the provision of public services by the independent nonprofit sector. With policies to build the capacity of the sector, public spending on voluntary organisations has grown from £2 billion in 1996/97 to £6.88 billion in 2005/06. Theory suggests that the comparative advantage of nonprofits lies in the mission-motivation of those who work in them, and predicts that motivated workers will accept lower wages. We examine sector wage differentials in time-series to show that growth in voluntary sector wages has outpaced the private and public sectors. This state intervention in the market has had big consequences for the make-up of the voluntary sector workforce.

Suggested Citation

  • Rutherford, Alasdair, 2010. "On the Up: Voluntary Sector Wages in the UK 1998 - 2007," Stirling Economics Discussion Papers 2010-06, University of Stirling, Division of Economics.
  • Handle: RePEc:stl:stledp:2010-06
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    File URL: http://hdl.handle.net/1893/2238
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    References listed on IDEAS

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    1. Glaeser, Edward L. & Shleifer, Andrei, 2001. "Not-for-profit entrepreneurs," Journal of Public Economics, Elsevier, vol. 81(1), pages 99-115, July.
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    3. Christopher J. Ruhm & Carey Borkoski, 2003. "Compensation in the Nonprofit Sector," Journal of Human Resources, University of Wisconsin Press, vol. 38(4).
    4. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    5. H. Naci Mocan & Erdal Tekin, 2003. "Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data on Child Care Workers," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 38-50, February.
    6. Richard Disney & Amanda Gosling, 1998. "Does it pay to work in the public sector?," Fiscal Studies, Institute for Fiscal Studies, vol. 19(4), pages 347-374, November.
    7. Preston, Anne E, 1989. "The Nonprofit Worker in a For-Profit World," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 438-463, October.
    8. 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 246-263, July.
    9. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    10. repec:hrv:faseco:33078971 is not listed on IDEAS
    11. 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 136-170, January.
    12. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    13. Alasdair Rutherford, 2010. "Get by with a little help from my friends: A recent history of charitable organisations in economic theory," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 17(4), pages 1031-1046.
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    Keywords

    Compensating Wage; Warm Glow; Nonprofit; Voluntary Sector;

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