Relational Goods, Monitoring and Non-Pecuniary Compensations in the Nonprofit Sector: The Case of the Italian Social Services

39 Pages Posted: 7 Sep 2006

See all articles by Michele Mosca

Michele Mosca

University of Naples Federico II

Marco Musella

University of Naples Federico II - Dipartimento di Teoria Economica e Applicazioni

Francesco Pastore

Seconda Università di Napoli - Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate; IZA Institute of Labor Economics

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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.

Keywords: relational goods, job satisfaction, wage determination, non-profit

JEL Classification: I00, J31, L31, L84

Suggested Citation

Mosca, Michele and Musella, Marco and Pastore, Francesco, Relational Goods, Monitoring and Non-Pecuniary Compensations in the Nonprofit Sector: The Case of the Italian Social Services. IZA Discussion Paper No. 2254, Available at SSRN: https://ssrn.com/abstract=928793

Michele Mosca

University of Naples Federico II ( email )

via Cinthia, 4
Naples, Caserta 80126
Italy

Marco Musella

University of Naples Federico II - Dipartimento di Teoria Economica e Applicazioni ( email )

Via Mezzocannone 16
Naples, 80134
Italy

Francesco Pastore (Contact Author)

Seconda Università di Napoli - Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate ( email )

Via Antonio Vivaldi, 43
Caserta CE, Caserta 81100
Italy

HOME PAGE: http://www.giurisprudenza.unina2.it/news.php?nid=185

IZA Institute of Labor Economics

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Germany

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