
Christian King, University of Central Florida & Gregory B. Lewis, Georgia State University
Do nonprofit organizations overpay or underpay their employees? One theory argues that employees choose to accept below-market pay so that they can do meaningful work for organizations whose missions they believe in. Nonprofits might even intentionally underpay workers so that only highly motivated people will apply.
An opposing theory argues that nonprofits overpay because they have fewer incentives to hold down wages. Nonprofits have tax advantages that private firms do not, meaning that they can create surpluses more easily, and they cannot give any “profits” to owners. Instead, they can share those surpluses with other stakeholders – with customers (through lower costs or higher quality services) and with employees (through higher wages).
We test these theories by examining the pay – and pay differences by race, gender, and sexual orientation – among registered nurses working for nonprofit, for-profit, and public hospitals. Continue reading “Nonprofit Pay in a Competitive Market: Wage Penalty or Premium?”


‘Ivory tower academics have nothing useful to offer practitioners’. As a former non-profit practitioner-turned-academic responsible for running a professional doctorate, delivering management education, undertaking client-driven, applied research projects, and publishing research papers, I have often heard this charge from practitioners. Equally, I have heard academic colleagues refer to applied, client-commissioned research as the ‘poor relation’, ‘ugly sister’ or even not ‘proper’ research because it ‘lacks rigour’ and ‘can’t possibly produce high quality, publishable research’.