TY  - JOUR
AU  - Ruhm,Christopher
AU  - Borkoski,Carey
TI  - Compensation in the Nonprofit Sector
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7562
PY  - 2000
Y2  - February 2000
UR  - http://www.nber.org/papers/w7562
L1  - http://www.nber.org/papers/w7562.pdf
N1  - Author contact info:
Christopher J. Ruhm
Frank Batten School of
Leadership and Public Policy
University of Virginia
235 McCormick Rd.
P.O. Box 400893
Charlottesville, VA 22904-40893
Tel: 434-243-3729
E-Mail: ruhm@virginia.edu
AB  - This analysis provides an in-depth investigation of the determinants of pay in the nonprofit sector.  The main findings are as follows.  First, holding constant individual characteristics, average weekly wages are 11 percent lower in nonprofit than for-profit jobs.  However, this difference is entirely explained by the concentration of nonprofit employment in relatively low paid industries.  Second, an accompanying longitudinal analysis, focusing on movements of workers between nonprofit and profit-seeking employers, suggests a nonprofit penalty of between 2 and 4 percent.  Third, nonprofit workers in three specific industries (hospitals, nursing/personal care facilities, social services) earn as much or more than their for-profit counterparts.  However, the effects of changing the type of employment varies substantially across the three industries. These results raise questions about several predominant models of nonprofit wage-setting.
ER  -