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Although the nonprofit sector is enormous, we know little about how workers there are compensated. This may be due, in part, to the fact that the literature is scattered across many fields including Human Resources Management, Accounting, Economics, Finance, Organizational Behavior, Political Science, and Sociology. The paper aims to synthesize the research on nonprofits from an economics point of view, while carefully considering the work in the many other areas. In addition to using data from the U.S. census to provide a description of employment and wages in the nonprofit sector as well as a comparison with the for-profit sector, this paper describes institutional details in nonprofits, considers why organizations form as nonprofits, reviews possible theories for a for-profit / nonprofit wage gap, performance pay in nonprofits, management compensation in nonprofits, gender issues, and international research.


Suggested Citation
Hallock, K. (2000). Compensation in nonprofit organizations [Electronic version]. Research in Personnel and Human Resources Management, 19, 243-294.

Required Publisher Statement
Posted with permission of Research in Personnel and Human Resources Management, published by Elsevier.