The Influence of Volunteers, Donations and Public Subsidies on the Wage Level of Nonprofit Workers: Evidence from Austrian Matched Data

In this article we add to the literature analyzing
wages in the nonprofit sector by estimating a wage
function based on employer-employee matched data for Austria.
We concentrate on the influence of voluntary contributions on
the wage level of paid workers. By using a quantile regression
approach we find that the existence of volunteers reduces the
wages of paid employees in nonprofit organizations. The number
of volunteers does not have an influence on the wage level.
Donations have a small but positive effect for higher income
groups only. Public subsidies increase wages of all paid workers
in a nonprofit organization.