Are Women’s and Men’s Pay Increase Trajectories Different in Nonprofit and For-Profit Human Services Organizations?

Abstract

Using the Survey of Income and Program Participation panel data, this study compares women’s and men’s pay increase trajectories and patterns of job mobility in the nonprofit and for-profit sectors. As recent studies suggested that industry-specific rather than economy-wide analysis is more appropriate in nonprofit/for-profit comparison, this study only focuses on the human services field. The results indicate that: (1) there was a selection in workers’ choices regarding staying or changing sector of employment; (2) nonprofit workers who chose to move to the for-profit sector tended to be those worse off in the nonprofit sector, whereas for-profit workers who chose to move to the nonprofit sector tended to be those better off in the for-profit sector, and both of the mover groups gained by moving; (3) in both nonprofits and for-profits, men enjoyed a steeper pay increase curve by occupying more managerial positions, having higher levels of education, and working longer hours; (4) on average, there was no statistically significant difference in pay increase trajectories between workers who chose to stay in their sector of employment. Consistent with previous studies, the regression analyses further support the argument that, within human services, there is not necessarily a sectoral difference in the gender pay gap—in other words, nonprofits are not necessarily more equitable than for-profits.