Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data on Child Care Workers

Abstract

Abstract-This paper uses a rich employer-employee matched data set to investigate the existence and the extent of nonprofit and part-time wage and compensation differentials in child care. The empirical strategy adjusts for workers' self-selection into the for-profit or the nonprofit sector and into full-time or part-time work, as well as for unobserved worker heterogeneity, using a discrete factor model. We find differences between the regimes (full-time for-profit, full-time nonprofit, part-time for-profit, part-time nonprofit) in the manner in which human capital characteristics of the workers are rewarded. There is substantial variation in wages as a function of employee characteristics, and there is variation in wages within sectors. The results indicate that part-time jobs are good jobs in center-based child care, and there exist nonprofit wage and compensation premia, which support the property-rights hypothesis.

A semi-parametric estimator for revealed and stated preference data—An application to recreational beach visitation

“…Given a finite sample size, econometric theory does not provide the optimal number of points of support in DFM. In general, researchers add points of support until the likelihood function value fails to improve significantly, based on a likelihood ratio test [20,27,29,31].…”

Training and intrinsic motivation in nonprofit and for-profit organizations

“…The collective evidence concerning the sign of the sectoral wage differential 31 Goddeeris (1988) and Mocan and Tekin (2003) pay particular attention to selection in narrow samples of lawyers and childcare workers, respectively. The latter part of Preston (1989) applies the methods of Heckman (1978Heckman ( , 1979 and Lee (1978) and finds that the results of these corrections are inconclusive concerning the hypothesis of whether lower-productivity workers self-select into NPs.…”

Unintended consequences of child care regulations

“…They show positive but small returns to education, experience, job tenure, and a few forms of training. See Mocan and Viola (1997) and Mocan and Tekin (2003) for extensive analysis of wages of child care workers. The coefficients on the other variables included in the state fixed effect model (column 1) are shown in Table A provide any strong evidence against a causal interpretation, but the tests are not definitive so some caution is warranted in interpreting the results in Table 7 as unintended causal effects of regulations.…”