Fudan J. Hum. Soc. Sci. https://doi.org/10.1007/s40647-018-0228-9 ORIGINAL PAPER The Overpaid and Underpaid: A Comparison of Labor Costs in Nonproﬁt and For-Proﬁt Service Organizations 1 2 Jianzhi Zhao Jiahuan Lu Received: 3 February 2018 / Accepted: 18 April 2018 Fudan University 2018 Abstract 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 com- munity 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 compara- tively 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. Keywords Labor costs Labor donation Property rights Human services & Jianzhi Zhao firstname.lastname@example.org Jiahuan Lu email@example.com School of International Relations
Fudan Journal of the Humanities and Social Sciences – Springer Journals
Published: May 30, 2018
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