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A Comparison of Wage Inequality in For-profit, Non-Profit and Local Government Organizations: Nursing Homes in the Midwestern US

In: Paid and Unpaid Labour in the Social Economy. An International Perspective

Author

Listed:
  • Avner Ben-Ner

    (University of Minnesota)

  • Ting Ren

    (University of Minnesota)

  • Darla Flint Paulson

    (University of Minnesota)

Abstract

This essay is devoted to investigate the ownership-related wage differentials using a sample of US nursing homes, distinguishing between nonprofit, forprofit and local government organizations. It focuses on within-organization across-occupation wage dispersion, controlling for important factors that may affect this variable. The results do not support widespread opinions about wage dispersion across the three ownership types. Neither the intrinsic motivation perspective’s prediction of less inequality among employees in nonprofit and government sectors, nor the agency theory prediction that higher level employees will use their influence to increase their own well-being without increasing the well-being of others, are supported.

Suggested Citation

  • Avner Ben-Ner & Ting Ren & Darla Flint Paulson, 2009. "A Comparison of Wage Inequality in For-profit, Non-Profit and Local Government Organizations: Nursing Homes in the Midwestern US," AIEL Series in Labour Economics, in: Marco Musella & Sergio Destefanis (ed.), Paid and Unpaid Labour in the Social Economy. An International Perspective, edition 1, chapter 12, pages 197-219, AIEL - Associazione Italiana Economisti del Lavoro.
    • Handle: RePEc:ail:chapts:03-12
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    Keywords

    wage dispersion; intrinsic motivations; US third sector.;
    All these keywords.

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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