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Rising Wages in the Expanding U.K. Nonprofit Sector From 1997 to 2007

Rutherford AC (2015) Rising Wages in the Expanding U.K. Nonprofit Sector From 1997 to 2007. Nonprofit and Voluntary Sector Quarterly, 44 (1), pp. 123-145.

Since 1997, the U.K. Government has sought to expand the provision of public services by supporting the independent nonprofit sector. With policies to build the capacity of the sector, public spending on voluntary organizations has grown from £2 billion in 1996/1997 to £6.88 billion in 2005/2006. Theory suggests that the comparative advantage of nonprofits lies in the mission motivation of workers, and predicts that motivated workers will accept lower wages. We examine sector wage differentials in time series to show that growth in voluntary sector wages for males has outpaced the private and public sectors, while relative female wages have remained static.

compensating wage; warm glow; wage growth; employment

Nonprofit and Voluntary Sector Quarterly: Volume 44, Issue 1

Author(s)Rutherford, Alasdair C
Publication date28/02/2015
Publication date online11/11/2013
Date accepted by journal09/09/2013

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