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Are Women’s and Men’s Pay Increase Trajectories Different in Nonprofit and For-Profit Human Services Organizations?

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  • Rong Zhao

    (Silberman School of Social Work, CUNY-Hunter College, New York, NY 10035, USA)

Abstract

Using the Survey of Income and Program Participation panel data, this study compares women’s and men’s pay increase trajectories and patterns of job mobility in the nonprofit and for-profit sectors. As recent studies suggested that industry-specific rather than economy-wide analysis is more appropriate in nonprofit/for-profit comparison, this study only focuses on the human services field. The results indicate that: (1) there was a selection in workers’ choices regarding staying or changing sector of employment; (2) nonprofit workers who chose to move to the for-profit sector tended to be those worse off in the nonprofit sector, whereas for-profit workers who chose to move to the nonprofit sector tended to be those better off in the for-profit sector, and both of the mover groups gained by moving; (3) in both nonprofits and for-profits, men enjoyed a steeper pay increase curve by occupying more managerial positions, having higher levels of education, and working longer hours; (4) on average, there was no statistically significant difference in pay increase trajectories between workers who chose to stay in their sector of employment. Consistent with previous studies, the regression analyses further support the argument that, within human services, there is not necessarily a sectoral difference in the gender pay gap—in other words, nonprofits are not necessarily more equitable than for-profits.

Suggested Citation

  • Rong Zhao, 2023. "Are Women’s and Men’s Pay Increase Trajectories Different in Nonprofit and For-Profit Human Services Organizations?," Social Sciences, MDPI, vol. 12(3), pages 1-18, March.
    • Handle: RePEc:gam:jscscx:v:12:y:2023:i:3:p:152-:d:1087278
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    References listed on IDEAS

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    1. Preston, Anne E, 1988. "The Effects of Property Rights on Labor Costs of Nonprofit Firms: An Application to the Day Care Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 36(3), pages 337-350, March.
    2. Preston, Anne E, 1990. "Women in the White-Collar Nonprofit Sector: The Best Option or the Only Option?," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 560-568, November.
    3. Andrew R. Finley & Curtis M. Hall & Amanda R. Marino, 2022. "Negotiation and executive gender pay gaps in nonprofit organizations," Review of Accounting Studies, Springer, vol. 27(4), pages 1357-1388, December.
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