The Role of the Economic Sector in the Provision of Care to Trusting Clients

With implications for senior care as well as child care, this article compares for‐profit and nonprofit dependent‐care facilities in areas of service that are not readily visible to consumers. Findings gleaned from the child‐care industry indicate that nonprofit facilities provide a higher quality of service on professionally identified variables than do their for‐profit counterparts. For‐profit directors were more likely to implement cost efficiencies that were not immediately apparent to clients. Despite this, significantly more of the for‐profits were displeased with their financial situation than were their nonprofit counterparts. The study suggests that professional background and training of directors exercises an influence on management satisfaction and decisions, independent of sector.     

Reforming Property Tax Exemption Policy in the Nonprofit Sector: Commercialism,Collective Goods,and the Donative Theory

This article develops, critiques, and tests the donative theory, which bases the tax treatment of nonprofits on their production of collective or public goods, through twelve variations for determining property-tax-exempt organizations in five nonprofit industry groups. Using a case study of Indianapolis nonprofits, the results reveal that a significant number of organizations in the nonprofit sector and most industry groups would experience the loss of their property tax exemption. The author calls for nonprofit managers and scholars to give greater future attention to property tax exemption policy in the nonprofit sector.     

The Business of Caring: Women's Self‐Employment and the Marketization of Care

Our goal in this article is to contribute to a differentiated analysis of paid caring work by considering whether and how women's experiences of such work is shaped by their employment status (for example, self‐employed versus employee) and the nature of care provided (direct or indirect). Self‐employed care workers have not been widely studied compared with other types of care workers, such as employees providing domestic or childcare in private firms or private homes. Yet their experiences may be quite distinct. Existing research suggests that self‐employed workers earn less than employees and are often excluded from employment protection. Nonetheless, they often report greater autonomy and job satisfaction in their day‐to‐day work. Understanding more about the experiences of self‐employed caregivers is thus important for enriching existing theory, research and policy on the marketization of care. Addressing this gap, our article explores the working conditions, pay and levels of satisfaction of care workers who are self‐employed. We draw on interviews from a small‐scale study of Canadian women engaged in providing direct care (for example, childcare) and indirect care (for example, cleaning).     

Gender,Occupation, and Promotion to Management in the Nonprofit Sector

Although one can assume the work values within nonprofit organizations promote gender equality in promotion decisions, there is preliminary evidence that in the nonprofit sector women are underrepresented in higher management positions. Whereas the mechanisms resulting in underrepresentation of women in management have been studied extensively in for‐profit organizations, little is known about these mechanisms in nonprofit organizations. Is gender in nonprofit organizations—even given the underlying values of these organizations—an impediment to attaining a management position? This article presents a case study of employment patterns within the Dutch section of the humanitarian INGO Médecins Sans Frontières and focuses particularly on the effects of gender and occupation on transitions to management. The case study organization represents a “critical case” because the nature of this organization's work environment can be expected to result in a relatively high percentage of women in management. Employee records (N = 2,247) were analyzed using event history models. We found that women made the transition to management less rapidly than men, even when controlling for factors like age, previous work experience, and nationality. However, gender differences were completely explained by occupation. Those employees in female‐dominated occupations (in this case, medical personnel such as nurses) had a lower promotion‐to‐management rate than those in male‐dominated occupations (in this case, nonmedical personnel such as financial officers), irrespective of their gender. This case study highlights the importance to nonprofit management research of studying the effects of occupational sex segregation on promotion.     

Human capital inflow in nonprofits: Entry‐level employees’ sector shift

Although recruitment and retention of qualified employees are some of the biggest challenges in the nonprofit sector, nonprofit organizations must maintain human capital inflow due to its significant impacts on organizational success. Through person‐organization value fit, this paper explores the factors that influence labor shifts from the public or for‐profit sector into the nonprofit sector in the South Korean context. Specifically, the effects on the likelihood of employees switching to the nonprofit sector from the perspective of eight job satisfaction measures and three education–job match measures are investigated. Two groups of employees (those whose career started in the for‐profit sector and those starting in the public sector) are compared. Results indicate that there is substantial variation between the two groups. In particular, intrinsic job satisfaction has completely different effects on those working in the for‐profit sector than on those working in the public sector regarding their likelihood of having experienced an intersectoral shift into nonprofits. The more public employees are satisfied with intrinsic job rewards, especially job reputation, the more likely they are to move to nonprofits. These results suggest that when employees in the public sector are satisfied with intrinsic rewards they tend to pursue greater intrinsic satisfaction in the nonprofit sector. This paper also reports that education–job match is only significant for those whose first job was in the for‐profit sector.     

Past work experience and organizational assimilation in nonprofit organizations

This study compares seven dimensions of organizational assimilation (OA)—familiarity with coworkers, familiarity with supervisors, recognition, acculturation, involvement, job competency, and role negotiation—into nonprofit, for‐profit, and governmental organizations incorporating the role of similarity of past work experience (magnitude of transition [MoT]). An online survey of 294 employee newcomers (tenures of 3 months or less) revealed differences in OA between those entering nonprofits and those entering for‐profit, and governmental organizations. Compared to newcomers entering for‐profit and governmental organizations, nonprofit newcomers reported higher levels of job competency, involvement, acculturation, and role negotiation. Interactions between organization type and MoT from past work to current roles were examined for effects on OA. When MoT was low, nonprofit newcomers were higher on acculturation and involvement than for‐profit newcomers; governmental newcomers with high MoT were significantly higher on role negotiation than for‐profit newcomers. Theoretical and practical implications for nonprofit organizational management, trainers, and nonprofit newcomers are discussed.     

Should St. Merciful Hospital Become CorpHealth,Inc.?: Ownership and Quality in U.S. Health Care Organizations

In this article, a review of empirical research on ownership and quality of care suggests the existence of a quality gap between for‐profit and nonprofit firms in some health sectors, depending on the prevailing type of financial payment for health care. Results of a theoretical model incorporating quality of care suggest that the nondistribution constraint is a simple and powerful explanation for a higher level of patient care quality at nonprofit health care facilities when reimbursement for health services is fixed prospectively. Analysis suggests that review of future conversions of health care facilities from nonprofit to for‐profit status should take into consideration the implied effects of the conversion on patient outcomes.     

Performance evaluations of for‐profit and nonprofit U.S. hospitals since 1980

This synthesis of studies examines whether the published literature shows an evidence‐based consensus on performance differences between private for‐profit and nonprofit hospitals in the United States since 1980. The author systematically and comprehensively surveyed peer‐reviewed publications to clarify this question. The author's second objective was to learn what proportion of all research assessing for‐profit and nonprofit health care providers is devoted to hospitals compared to all other providers. The third goal was to discover how any trends in observed performance differences among hospitals compare with trends among other provider types. Computerized bibliographic searches of all relevant databases yielded seventy‐five studies (ninety‐three assessments) that compared the performance of for‐profit and nonprofit hospitals on four performance criteria: access, quality, cost or efficiency, and amount of charity care. The author coded findings on performance in one of three ways: for‐profit superiority, nonprofit superiority, or inconclusive. Most studies (60 percent) reported that nonprofit hospitals have better relative performance than for‐profit hospitals, clear evidence of their organizational effectiveness. Thirty‐one percent were inconclusive, and 8 percent reported that for‐profits were better.     

Voluntary contributions and wages in nonprofit organizations

Voluntary work provides a major source of labor for many nonprofit organizations. Consequences of volunteers and paid staff working alongside each other in nonprofits are well documented. This article contributes to this strand of literature and investigates whether the presence of volunteer work influences paid employees' wages in nonprofit organizations. We estimated a multilevel wage equation accounting for personal characteristics of workers and characteristics of nonprofits. The analysis revealed that nonprofit organizations engaging volunteers pay lower wages to their employees. Our findings contribute to the understanding of wage‐setting behavior of nonprofits and improve the methodological approach of empirical research in this field.     

Portuguese Migrants in the German Labor Market: Selection and Performance1

The labor market performance of Portuguese workers in Germany is analyzed in this article. While previous work has compared wages and characteristics of migrants to natives only, this study also matches the data set with an equivalent survey from the sending country. The findings show that Portuguese migrants as a whole are negatively selected, with the exception of blue‐collar workers, the largest group among the movers. The finding that Portuguese migrants earn more than comparable Germans indicates that they have higher unobservable skills.     

Hospice of the Red River Valley: A nonprofit's response to for‐profit competition

Research of nonprofit versus for‐profit competition points to potential quality and access advantages of the nonprofit, tied to shared community values leading to enhanced social capital and legitimacy, whereas the for‐profit is known for cost and scale advantages. However, the prevailing mode of thinking in mixed‐form competitive contexts urges nonprofits to become “more businesslike” and imitate for‐profit attributes. This qualitative study of a nonprofit organization facing new for‐profit competition illustrates that while it is possible and advisable to learn from for‐profit competitors, it is not necessary or even desirable for the nonprofit to abandon its own unique advantages. Although nonprofits should be increasingly sensitive to cost and scale advantages, they do not have to imitate for‐profit attributes and play the low‐cost game. A competitive response to for‐profit challenges that is carefully crafted and executed based on the unique advantages of the nonprofit organization can truly win the day.     

Helpless in Finance: The Cost of Helping Effort Among Bank Employees

Theory suggests that individual performance pay increases effort but may reduce the incentive to help co-workers. In an original survey of finance industry employees subject to individual performance pay, we demonstrate that those workers who report they do not help co-workers earn significantly more. This result is particularly strong for those workers with the strongest individual performance pay incentives. Moreover, when those workers report that their coworkers help them, they also earn significantly more. These dual results are consistent with a strong incentive to free-ride on the helping effort of others in the face of individual performance pay.

Intersections on the Class Escalator: Gender,Race, and Occupational Segregation in Paid Care Work

As U.S. manufacturing and production industries have declined, the growth of the care sector has increasingly become an important source of jobs for workers without a college degree. Often requiring some form of postsecondary credentialing, many care occupations can provide better wages, job stability, and possible upward mobility for less educated workers. However, employment patterns in paid care work are both gendered and racialized: women and workers of color are overrepresented in care occupations with fewer entry barriers, benefits, and lower pay. Although these patterns are well documented, the mechanisms producing them are less well understood. Using event history analysis and the National Longitudinal Survey of Youth (NLSY79), this study evaluates the explanatory power of neoclassical economic, status attainment, and social closure theories of occupational segregation for black women’s and men’s greater hazard or “risk” of entering care occupations, relative to white workers. Net of individual and closure mechanisms, significant residual effects suggest labor market discrimination remains a primary explanation for the over-representation of black workers in less credentialed care jobs with fewer benefits.     

A help or a hindrance? The impact of job training on the employment status of disadvantaged women

The objective of this study is to evaluate whether welfare-sponsored, government-funded job training helps participants improve their employment status. The negligible effects found in prior studies may be due to design limitations or inherent flaws in job training programs and therefore do not necessarily contradict human capital theory. The present study uses longitudinal and representative data, dynamic modeling techniques, an appropriate counterfactual, and important contextual variables to assess the likelihood of obtaining employment for job training participants and nonparticipants. It also describes the types of jobs women obtain by examining wages, industry, occupation, and labor union membership. Whereas some of the results support prior research, the focus is on the unique contributions of this study, which include a differential training effect for full- and part-time workers and a detailed analysis of macro-structural variables, which are rarely included in studies of labor supply.     

Which Leadership Constructs Are Important for Predicting Job Satisfaction,Affective Commitment,and Perceived Job Performance in Profit versus Nonprofit Organizations?

As an integrative research effort, the present study critically analyzed the relative importance of six leadership constructs—(1) transformational, (2) transactional, (3) laissez‐faire, (4) consideration, (5) initiating structure, and (6) leader‐member exchange (LMX)—as predicting indicators of leadership effectiveness in the for‐profit versus the nonprofit sector. Based on data from seven samples from the for‐profit and nonprofit sectors, the unique effects of the six leadership constructs were tested on three criteria of leadership effectiveness on the individual level: job satisfaction, affective commitment, and perceived job performance. The results for the for‐profit samples revealed that LMX was the most important aspect for explaining variance in job satisfaction, and initiating structure was most important for commitment. In the nonprofit samples, LMX was the most important aspect of job satisfaction and transformational leadership for commitment. In both for‐profit and nonprofit organizations, initiating structure had the strongest unique impact on perceived job performance. We discuss implications for current leadership research and practical implications.     

The nonprofit leadership deficit: A case for more optimism

Recent headlines claim that a looming nonprofit leadership crisis will soon be precipitated by retiring baby boomers. Analysis of baby boom demographics, using national census data on the age distribution and other demographic characteristics of top leaders by sector, confirms the aging nonprofit workforce. However, the issue of whether the aging workforce portends a nonprofit leadership crisis, when analyzed within a theoretical framework of supply and demand in the market for nonprofit executives, reveals flaws in most commentaries about the leadership crisis. Workings of the labor market and nonprofit organizations themselves suggest trends that could be expected to affect labor supply and demand and mitigate a leadership deficit. Reasonable—and likely—market and organizational adjustments, including higher executive pay, increased labor force participation of older workers, skill acquisition of younger workers, possible consolidation of nonprofit organizations, board and volunteer skill sharing, and even venture philanthropy, can be expected to moderate the shock of baby boom retirements, much in the way that schools, job markets, and housing markets have accommodated the movement of this “bulging” generation through earlier decades of their lives.     

Does Public or Not-for-Profit Status Affect the Earnings of Hospital Workers?

This paper examines the earnings differentials among hospital workers in the public, private nonprofit, and private for-profit sectors. Utilizing data from the 1995 through 2007 Current Population Surveys, unadjusted earnings are highest in the private nonprofit sector and lowest in private for-profit firms. Once measurable characteristics are accounted for, health practitioners in for-profit and nonprofit hospitals earn similar wages while public sector workers earn small but significant wage penalties. Nonprofit hospitals tend to attract workers with higher levels of skill as measured by schooling and potential experience. This could be explained in part by worker sorting and lower cost containment incentives in nonprofit hospitals. Wage change analysis using pooled 2-year panels constructed from the CPS indicate no significant differences in earnings between the three sectors of employment. Whatever the role of the sector of employment on the overall earnings of hospital workers, there is sufficient worker mobility within the industry to largely eliminate systematic wage differences across type of hospital.

Determining person–organization fit for healthcare CEOs: How executive equity sensitivity relates to nonprofit and for‐profit sector selection

This article empirically examines the relationship between the trait of equity sensitivity and employment sector (for‐profit, public, and nonprofit) for senior executives. By controlling for industry (healthcare), we show a relationship between this trait and employment sector in both a single‐state survey and a multistate survey. Findings indicate that benevolents have a propensity to pursue nonprofit positions whereas entitleds are likely to gravitate toward for‐profit positions. Implications for job seekers, employers, and academics are provided.     

Nonprofit organizations in between the nonprofit and market spheres: Shifting goals,governance and management?

In spite of the belief instilled by the New Public Management reforms that nonprofit organizations (NPOs) can benefit from more management, more measurement and more market practices, systematic knowledge on the organizational effects of NPOs incorporating business practices in their day‐to‐day functioning remains absent to date. This research note addresses this limitation by reviewing 49 research articles. The focus lies on the redefinition of nonprofits' mission and income streams, changing governance arrangements and shifting management practices. We find that, despite numerous detrimental effects cited in the literature, (a) generating commercial income can contribute to the financial stability of NPOs, and (b) hybridization towards the market domain can strengthen the organizational legitimacy of NPOs, suggesting that imitating for‐profit enterprises might contribute to nonprofit functioning in perception, rather than in practice.     

Taking Pressure Off Families: Child‐Care Subsidies Lessen Mothers’ Work‐Hour Problems

We use the Philadelphia Survey of Child Care and Work to model the effect of child‐care subsidies and other ecological demands and resources on the work hour, shift, and overtime problems of 191 low‐income urban mothers. Comparing subsidy applicants who do and do not receive cash payments for child care, we find that mothers who receive subsidies are 21% less likely to experience at least one work hour–related problem on the job. Our results suggest that child‐care subsidies do more than allow women to enter the labor force. Subsidies help make it easier for mothers in low‐wage labor both to comply with employer demands for additional work hours and to earn the needed wages that accompany them.