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Title:Relational goods, monitoring and non-pecuniary compensations in the nonprofit sector: the case of the Italian social services PDF Logo
Authors:Mosca, Michele
Musella, Marco
Pastore, Francesco
Issue Date:2006
Series/Report no.:IZA Discussion Papers 2254
Abstract:This paper investigates the nonprofit wage gap suggesting a theoretical framework where, like in Akerlof (1984), effort correlates not only with wages, but also with non-monetary compensations. These take the form of relational goods and services by-produced in the delivery of particular services. By paying higher non-pecuniary compensations, the nonprofit sector attracts intrinsically similarly skilled, but more motivated workers, able to provide in fact a higher level of effort than their counterparts in the forprofit sector. On an empirical ground, the paper provides a number of econometric tests that confirm the main predictions of the model in Italy's case. It adds to the available empirical literature by introducing in the analysis direct measures of non-pecuniary compensations and job satisfaction.
Subjects:relational goods
job satisfaction
wage determination
non-profit organisations
efficiency wages
JEL:I00
J31
L31
L84
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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