RT Journal Article
SR Electronic
T1 Compensation in the Nonprofit Sector
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 992
OP 1021
DO 10.3368/jhr.38.4.992
VO 38
IS 4
A1 Ruhm, Christopher J.
A1 Borkoski, Carey
YR 2003
UL http://jhr.uwpress.org/content/38/4/992.abstract
AB We investigate the determinants of pay in the nonprofit sector using data for 25–55 year olds from the 1994– 88 Current Population Survey Outgoing Rotation Groups. Our results are consistent with the hypothesis that compensation is primarily determined in competitive markets without “labor donations” to nonprofit employers. One implication is that nonprofit workers receive virtually the same wages as observationally equivalent employees in similar positions with profit-seeking enterprises. We cannot rule out the possibility of nonprofit penalties or premiums for selected groups; however, the differentials are generally small and competition appears to play a dominant role in nonprofit wage setting.