Departmental Papers (SPP)

Document Type

Journal Article

Date of this Version



There is considerable theoretical and empirical support for wage differentials between the nonprofit and for-profit sectors. This research article examines how executive directors of 377 nonprofits across Canada view their wages. Executive directors’ perceptions, especially concerning their own wages, are important because it is in this context that they make choices about where to work. This, in turn, determines the managerial labor supply for the sector. The article begins by presenting a brief review of the theoretical explanations offered by scholars for wage differentials, looks next at the empirical findings on wage differentials, and then presents the research findings. In discussing the findings, the article analyzes what motivates executive directors to work in the nonprofit sector despite the negative wage differential and examines the research results for gender differences with respect to wages, wage differentials, and motivations.


© 2006 Haworth Press. All rights reserved.
Postprint version. Published in Journal of Community Practice, Volume 14, Issue 3, 2006, pages 69-91.
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NGOs, empowerment index, India, women

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Social Policy Commons



Date Posted: 15 October 2007

This document has been peer reviewed.