There are three objectives in this paper. First is to show the existence of wage differentials. The second objective is to investigate the reasons why individuals would take lower wages at a non-profit and try to show that these reasons exist empirically. Thirdly, to prove or disprove the postulate that the donative labor hypothesis is not as important as other factors when explaining wage differentials.
To facilitate achieving these goals, this paper will begin by laying out the economic theory behind wages. Then it will move to looking at the current research on the topic of wage differentials, which will be followed by an econometric model. Lastly, to conclude there will be a discussion of the results.
Date of Completion
Date of Award
Freidman, David Travis, "What’s the Difference? Wage Differentials and the Donative-Labor Hypothesis in Non-Profit Firms" (2010). Economics Theses. 73.