Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data of Child Care Workers
This paper uses a rich employer-employee matched data set to investigate the existence and the extent of nonprofit and part-time wage and compensation differentials in child care. The empirical strategy adjusts for workers' self-selection into the for-profit or nonprofit sectors, into full-time or part-time work, as well as unobserved worker heterogeneity using a discrete factor model. We find differences between the regimes (full-time for-profit, full-time nonprofit, part-time for-profit, part-time nonprofit) in the way in which human capital of the workers are rewarded. There is substantial variation in wages as a function of employee characteristics, and there is variation in wages within sectors. The results indicate that part-time jobs are good' jobs in center-based child care. Furthermore, despite the evidence supporting the labor donation hypothesis, our results indicate the existence of nonprofit wage and compensation premiums, which support the property rights hypothesis.
"Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data of Child Care Workers", The Review of Economics and Statistics, February 2003, Vol. 85, No. 1, pp.38-50. citation courtesy of