RT Journal Article SR Electronic T1 Is Compassion a Good Career Move?: Nonprofit Earnings Differentials from Job Changes JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 0319-10120R1 DO 10.3368/jhr.56.4.0319-10120R1 A1 Andrew C. Johnston A1 Carla Johnston YR 2019 UL http://jhr.uwpress.org/content/early/2019/12/03/jhr.56.4.0319-10120R1.abstract AB We explore the nonprofit earnings penalty. To separate the influence of demand and supply, we leverage workers who change employers in administrative tax data. The average nonprofit worker earns 5.5 percent less than the average for-profit worker. Supply-side factors (worker selection) contribute 80 percent of the nonprofit differential. The remaining 20 percent is from demand (a nonprofit penalty). Within-worker nonprofit variation generates several insights about the influence of nonprofits on the labor market. Nonprofits compress the wage distribution and reduce inequality among earners. Nonprofit penalties are much more pronounced in classic charities than in “commercial” nonprofits, which sometimes exhibit nonprofit premia. JEL Codes: J4, J31, L3