Astrid Pennerstorfer

What Determines the (Internal) Wage Distribution in Non‐Profit Organizations?

Existing research in labor economics has rarely accounted for non-profit status in examining wage dispersion. Contrariwise, in non-profit sector research, little has been said so far about (intra-organizational) wage dispersion. Scattered findings from previous work indicate that wage dispersion is smaller in non-profit organizations (NPOs) as compared to for-profits (FPOs). Fairness perceptions and high moral ideals of workers within this sector are often cited as reasons for this assumption. Empirically, however, the reasons for inter-sectoral differences remain obscure. In our analysis, we concentrate on specific characteristics of NPOs as compared to FPOs. More specifically, this paper is to address the question if volunteer workers, donations and public subsidies influence the within-firm wage dispersion in NPOs. In order to answer this research question we use Austrian matched employer-employee data collected in 2006. We estimate an instrument variable regression and find that NPOs that employ volunteer workers and NPOs with a more even mix between paid and unpaid staff display smaller wage dispersion. Donations and public subsidies augment the wage dispersion. Copyright

Paid and unpaid labor in nonprofit organizations: Does thesubstitution effect exist?

In non-profit organizations (NPOs), volunteers often work alongside paid workers. Such a co-production setting can lead to tension between the two worker groups. This article examines for the first time if and how volunteers influence the separation of paid employees, and thus it contributes to the debate over whether volunteers can substitute paid workers. Using Austrian data at the organizational level, we find a significant impact of volunteers on the separations of paid workers in NPOs facing increased competition. These findings support the assumption that a partial substitution effect exists between paid workers and volunteers.

Paid and Unpaid Labour in Non-Profit Organizations: Does the Substitution Effect Exist?

In non-profit organizations (NPOs), volunteers often work alongside paid workers. Such a co-production setting can lead to tension between the two worker groups. This article examines for the first time if and how volunteers influence the separation of paid employees, and thus it contributes to the debate over whether volunteers can substitute paid workers. Using Austrian data at the organizational level, we find a significant impact of volunteers on the separations of paid workers in NPOs facing increased competition. These findings support the assumption that a partial substitution effect exists between paid workers and volunteers.

The Effect of Volunteers on Paid Workers’ Excess Turnover in Nonprofit and Public Organizations:

Volunteers in nonprofit and public organizations can provide additional resources and exert positive influence on organizations, staff, and clients. However, the relationship between paid staff and volunteers is complex and may lead to tension, employee dissatisfaction, and, ultimately, workers leaving the organization. This article focuses on excessive worker turnover as a signal of delicate organizational health and analyzes whether volunteers are an important variable in explaining differences in excess turnover rates between organizations. Using Austrian survey data and applying Tobit regressions, we show that more volunteers in management tasks compared with volunteers employed in other tasks increase both the probability of experiencing excess worker turnover and the amount of excess turnover. This result is interpreted as a possible sign for volunteer–staff tension. Understanding the consequences of using volunteer labor for paid workers is important to prevent volunteering from backfiring on service capacity and quality in public and nonprofit organizations.