Table 4

Nonprofit Differential Estimates by Industry

Nonprofit Differential EstimatesDifference Decomposition
Cross-Sectional DifferenceWithin-Worker EstimateGen-Diff-in-Diff EstimatePercent DemandPercent Supply
Industry(1)(2)(3)(5)(6)
All industries-0.053***-0.012***-0.010***1981
(0.001)(0.001)(0.001)
26,919,85926,919,85926,919,859
Health and human services
Outpatient healthcare (621)0.068***0.035***0.035***5149
(0.010)(0.004)(0.004)
905,0311,030,102905,031
Doctor’s offices (621,111)0.227***0.025**0.026**1189
(0.026)(0.010)(0.010)
360,097383,801360,097
Hospitals (622)0.0080.000-0.002-26126
(0.005)(0.003)(0.003)
381,971757,031381,971
Nursing facilities (623)0.005-0.002-0.001-16116
(0.011)(0.006)(0.006)
110,191183,575110,191
Family services (624)0.128***0.033***0.034***2674
(0.013)(0.007)(0.008)
65,926152,95765,926
Childcare (62,441)0.049***0.054***0.050***102-2
(0.016)(0.011)(0.011)
42,36054,40142,360
Education (611)-0.049***-0.023***-0.025***5050
(0.011)(0.008)(0.008)
104,528165,407104,528
Finance and management
Banking & credit (522)-0.270***-0.027***-0.026***1090
(0.010)(0.007)(0.007)
976,814988,174976,814
Investments (523)0.345***-0.026-0.023-7107
(0.037)(0.018)(0.018)
80,18580,34980,185
Insurance (524)-0.068-0.038-0.0385545
(0.107)(0.085)(0.082)
567,213567,270567,213
Administration (561)0.096***0.039**0.039**4060
(0.024)(0.014)(0.013)
2,279,9152,280,3132,279,915
Utilities (221)0.1180.0120.1018614
(0.251)(0.188)(0.199)
161,157161,853161,157
Classic charities
Legal aid (54,111)-0.256***-0.131***-0.129***5149
(0.036)(0.036)(0.036)
270,984271,996270,984
Religious organizations (8131)-0.264***-0.099***-0.098***3763
(0.014)(0.013)(0.013)
4,003,9994,012,9944,003,999
Grant-making foundations (8,132)-0.123***-0.020*-0.0171486
(0.012)(0.009)(0.009)
3,943,8223,971,9553,943,822
Social advocacy (8,133)-0.243***-0.024***-0.021*991
(0.012)(0.009)(0.009)
3,949,3453,974,3323,949,345
Civic organizations (8,134)-0.081***-0.051***-0.050***6238
(0.015)(0.011)(0.011)
2,581,2112,593,2242,581,211
  • Notes: Table is based on the estimation of Equation 2 estimated for various industries. Column 1 reflects the cross-sectional earning difference between nonprofit and for-profit workers in each category. Column 2 estimates the nonprofit penalty by adding worker fixed effects to the estimation of Equation 1. Column 3 implements a generalized difference-in-difference that adds to the specification in Column 2 event–time fixed effects to account for general dynamics surrounding job changes. Column 4 reflects an estimate of how much of the nonprofit differential arises from demand-side forces, calculated by dividing the value in Column 3 with the value in Column 1. Column 5 reflects the share of the nonprofit differential arising from supply differences, which is the remaining nonprofit differential unexplained by demand. The third row for each estimate provides the relevant N. Significance: *p < 0.05, **p < 0.01, ***p < 0.001.