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Negotiation and executive gender pay gaps in nonprofit organizations

Author

Listed:
  • Andrew R. Finley

    (Claremont McKenna College)

  • Curtis M. Hall

    (Drexel University)

  • Amanda R. Marino

    (San Diego State University)

Abstract

This study examines gender pay gaps among nonprofit executives and how compensation negotiability influences these disparities. Using tax return data from IRS Form 990 filings, we find that females earn 8.9% lower total compensation than men in our sample. Further, we observe that settings more conducive to negotiation manifest in larger pay disparities, whereas settings that limit executives’ opportunities to negotiate or that encourage females in particular to negotiate produce smaller gender pay gaps. Our nonprofit setting constrains mechanisms, such as labor force participation rates and risk preferences, that are thought to explain the pay gap, and our results are robust to using a Heckman correction model and matched samples. These findings provide evidence from a large-scale archival dataset of a plausible mechanism for the gender pay gap and point to a potential cost of work environments where negotiations play a larger role in setting compensation.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:reaccs:v:27:y:2022:i:4:d:10.1007_s11142-021-09628-2
    DOI: 10.1007/s11142-021-09628-2
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    References listed on IDEAS

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    Cited by:

    1. 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.

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