THE EXCHANGE VALUE OF NONPECUNIARY BENEFITS |
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| Authors: | W Mark Crain Asghar Zardkoohi |
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| Institution: | *Virginia Polytechnic Institute and UCLA, and Auburn University. The authors are grateful to Armen Alchian, James Buchanan, Louis DeAlessi, Roger Faith and Robert Tollison for helpful comments and suggestions. |
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| Abstract: | Several important contributions to the property rights literature develop the point that different institutional arrangements lead to differences in the relative cost of income in pecuniary form versus income in nonpecuniary form. This analytical framework is rich in positive content, although few attempts have been made to measure directly the exchange value of nonpecuniary income. This paper posits a simple method for approximating the exchange value of nonpecuniary rewards and offers some estimates of this value for a particular occupational category: namely, scientists in the United States. The results of this estimation indicate that nonpecuniary benefits are an important component of total remuneration in government employment relative to private sector employment for this occupational group. |
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