The comparison between nonprofit and for-profit organizations has been a lingering question for scholars and practitioners. This research explores employee wage differentials across sectors using a national sample of child care workforce. After controlling for a range of individual, occupational, organizational, and community factors, this research reports a significant wage premium for nonprofit child care teachers. In addition, this study finds evidence for both the labor donation and property rights hypotheses, but the property rights theory demonstrates comparatively stronger explanatory power. Although individuals with stronger intrinsic motivation are more willing to donate labor for charitable outputs, inefficient management in nonprofits actually sets wage levels over the market level. Overall, the study highlights nonprofits' comparative advantage in employee motivation but disadvantage in efficient management. The findings have implications for public and nonprofit management. (author abstract)
The overpaid and underpaid: A comparison of labor costs in nonprofit and for-profit service organizations
- Related Resources
Related resources include summaries, versions, measures (instruments), or other resources in which the current document plays a part. Research products funded by the Office of Planning, Research, and Evaluation are related to their project records.
- Related Studies
- You May Also Like
These resources share similarities with the current selection. They are found by comparing the topic, author, and resource type of the currently selected resource to the rest of the library’s publications.