Executive Gender Pay Gaps in Nonprofit Organizations

45 Pages Posted: 5 Jun 2019

See all articles by Andrew Finley

Andrew Finley

Claremont McKenna College - Robert Day School of Economics and Finance

Curtis M. Hall

Drexel University - Bennett S. LeBow College of Business

Amanda Marino

Drexel University - Bennett S. LeBow College of Business

Date Written: May 7, 2019

Abstract

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

Finley, Andrew and Hall, Curtis M. and Marino, Amanda, Executive Gender Pay Gaps in Nonprofit Organizations (May 7, 2019). Claremont McKenna College Robert Day School of Economics and Finance Research Paper No. 3385848. Available at SSRN: https://ssrn.com/abstract=3385848 or http://dx.doi.org/10.2139/ssrn.3385848

Andrew Finley

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6420
United States

Curtis M. Hall (Contact Author)

Drexel University - Bennett S. LeBow College of Business ( email )

Philadelphia, PA 19104
United States

Amanda Marino

Drexel University - Bennett S. LeBow College of Business ( email )

Philadelphia, PA
United States

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