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The price of morals: an empirical investigation of industry sectors and perceptions of moral satisfaction--do business economists pay for morally satisfying employment?

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  • Mary Ellen, Benedict
  • David, McClough

Abstract

Many factors contribute to choice of employment other than compensation. This study extends the current literature by testing whether a compensating differential exists in employment sectors deemed morally satisfying. Data from the 1998 salary survey of the National Association for Business Economics (NABE) and sector rankings addressing moral satisfaction provided by a sample of college students are used in a regression analysis. When we include a self-selection correction in the salary regression, business economists in the for-profit sector earned almost 150 percent more than their nonprofit counterparts, once controlling for the choice of employment sector and human capital variables. Average wages were economically and statistically higher for business economists situated in the middle and low moral satisfaction groupings compared to those in the high moral satisfaction sector. Results suggest a compensating differential for those employed in morally satisfying industry sectors..

Suggested Citation

  • Mary Ellen, Benedict & David, McClough, 2006. "The price of morals: an empirical investigation of industry sectors and perceptions of moral satisfaction--do business economists pay for morally satisfying employment?," MPRA Paper 41075, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41075
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    Cited by:

    1. Florian H. Schneider & Fanny Brun & Roberto A. Weber, 2020. "Sorting and Wage Premiums in Immoral Work," CESifo Working Paper Series 8456, CESifo.

    More about this item

    Keywords

    compensating differential; moral satisfaction; salary regression;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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