Executive Gender Pay Gaps in Nonprofit Organizations
45 Pages Posted: 5 Jun 2019
Date Written: May 7, 2019
This study examines gender pay differences for nonprofit executives. While prior studies have examined top executive pay gaps in for-profit firms, less attention has been given to nonprofits, a setting where female participation is higher and risk aversion explanations for the pay gap should be less likely to exist. Using data from IRS 990 filings, our primary analysis indicates that female nonprofit executives nevertheless receive 8.9 percent lower total compensation than their male counterparts. This finding is robust to using a Heckman correction model and propensity score matching. In additional analysis, we find that greater female presence on the board of directors and in the CEO position mitigates the pay gap. Lastly, we examine specific settings that plausibly constrain executives’ ability to negotiate their compensation and observe that the gap is smaller where opportunities to negotiate are lower.
Keywords: Gender pay gap, Executive compensation, Nonproﬁt organization
JEL Classification: J16, J31, L30, M12
Suggested Citation: Suggested Citation