Promotions and Incentives in Nonprofit and for-Profit Organizations

DeVaro, Jed; Brookshire, Dana

doi:10.1177/001979390706000301

Cited by 84 publications

(83 citation statements)

References 29 publications

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“…Alternatively, sheltered from competition, the public sector may admit of more discrimination in promotion than the private sector and/or may make less use of incentive mechanisms. Although the public sector has been largely neglected in the empirical literature, there is the hint that promotion chances may be lower for females in the public sector and among nonprofits than in the private sector (Cobb-Clark, 2001;Devaro and Brookshire, 2007).…”

mentioning

confidence: 99%

The Role of Gender in Promotion and Pay over a Career

Addison

Öztürk

Wang

2014

Journal of Human Capital

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The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. AbstractUsing data from the National Longitudinal Survey of Youth (NLSY79), this paper considers the role of gender in promotion and subsequent earnings development and how this evolves over a career. In its use of three career stages, the study builds on earlier work using the NLSY79 that considers gender differences in the early career years alone. The raw data suggest reasonably favorable promotion outcomes for females over a career. But the advantages seem to be confined to less-educated females. And while there are strong returns to education for males through enhanced promotion probability and attendant wage growth in later career this is not the case for females. Although this latter finding is not inconsistent with fertility choices on the part of educated females, choice is seemingly only part of the explanation.JEL Classification: J16, J31, J51, J62

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confidence: 99%

The Role of Gender in Promotion and Pay over a Career

Addison

Öztürk

Wang

2014

Journal of Human Capital

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“…They find that NP organizations are less likely to offer promotions, and the promotions that they do offer are less likely to be based on job performance or merit. Furthermore, echoing the findings of Roomkin and Weisbrod (1999) and Bertrand, Hallock and Arnould (2005) for hospital executives, DeVaro and Brookshire (2007) find that NP workers are less likely to receive commissions on sales, bonuses and profit sharing than their FP counterparts. These results are weakly consistent with our results, in that the weak differences between FP on the one hand and NP and LG homes on the other hand, although in the predicted direction, are weaker than those found in other industries most likely because there are few pay-for-performance opportunities in the nursing home environment.…”

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confidence: 55%

“…Some of the motivation may come from employees' intrinsic motivation to do the right job in their occupations and their organizations. It has been argued that NP 11 and LG workers' values are better aligned with those of the organizations in which they work than is the case for FP workers (Francois, 2000;DeVaro and Brookshire, 2007). If this is indeed so, NP and LG organizations will have to invest less in practices that support appropriate decisions than FP firms, but it is extremely unlikely to eliminate the agency problem or even compensate for the agency problems associated with the lack of ownership rights in NP and LG organizations.…”

Section: (B) Organization Type and Organization Structurementioning

confidence: 99%

“…There is very little relevant research on nursing homes and other industries against which we can compare this set of results. One exception is DeVaro and Brookshire (2007), who use an employer survey concerning promotion and incentive practices in FP firms and NP organizations. They find that NP organizations are less likely to offer promotions, and the promotions that they do offer are less likely to be based on job performance or merit.…”

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confidence: 99%

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Does Organization Ownership Matter? Structure and Performance in For-Profit, Nonprofit and Local Government Nursing Homes

Ben‐Ner

Ren

2008

SSRN Journal

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We compare the structure and performance of for-profit (FP), nonprofit (NP) and local government (LG) organizations. These organizations differ in their ownership structure, objectives and agency relations. We conjecture that, compared to NP and LG, FP firms (a) delegate less decision-making power to employees, (b) provide more incentives and fewer fringe benefits, (c) monitor less, and (d) rely less on social networks to recruit employees. We also hypothesize that, relative to NP and LG, FP firms (i) are more efficient, (ii) provide similar levels of service elements that observable to their customers, (iii) provide lower levels of less-well observable elements, and (iv) provide less of the relational elements. Differences in structure and performance are likely to be tempered by regulation, market competition and institutional pressures for similarity. We study detailed performance outcomes for all the 369 Minnesota nursing homes included in federal and state datasets, and organization structure for a subsample of 105 homes that responded to our survey. Our empirical investigation generally supports our hypotheses. In particular, we find that FP homes serve more residents than NP and LG, after controlling for quality differences. However, FP homes provide lower quality services on a large array of attributes, especially those that are less observable by nursing home residents and their families. The differences among different types of organization are small, but significant. [list] who provided data and helped making sense of them. We also thank [list] who worked on the preparation and administration of the survey; nursing home administrators who responded to the survey were instrumental in the development of this project.

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“…The conventional explanation for this result (e.g., Preston 1989, Handy and Katz 1998, DeVaro and Brookshire 2007 is that the compensating differential favoring FPs increases with skill level because the work becomes more closely tied to the organizational mission. Preston (1989, p. 443) writes, "…the further removed the worker is from the generation of social benefits, the less likely he will be to 'donate' his labor at a reduced wage.…”

Section: Interpreting the Evidencementioning

confidence: 99%

Compensation and Intrinsic Motivation in Nonprofit and For-Profit Organizations

2015

Self Cite

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We develop a theoretical model in which for-profit and nonprofit employers compete to hire a worker who derives intrinsic motivation from the nonprofit's social mission. We also use a unique data set of California establishments to provide new evidence on sectoral differences in pay and HRM systems, finding a greater incidence of training and benefits in nonprofits, lower wages (with the wage gap increasing in skill level), and less incentive pay than in for-profits. The model is used to interpret both this new evidence and other empirical results from the literature, including the inconclusive sign of the FP-NP wage differential.

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Promotions and Incentives in Nonprofit and for-Profit Organizations

Cited by 84 publications

References 29 publications

The Role of Gender in Promotion and Pay over a Career

The Role of Gender in Promotion and Pay over a Career

Does Organization Ownership Matter? Structure and Performance in For-Profit, Nonprofit and Local Government Nursing Homes

Compensation and Intrinsic Motivation in Nonprofit and For-Profit Organizations

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