Employment in Austrian Nonprofit Social Service Sector. Theoretical background and empirical analysis

Nonprofit organizations play a decisive role in the provision of social services in Austria. Social and economic indicators of social service providers are not currently documented. Empirical studies are rare. Against this backdrop, this study tries to fill some of these gaps in the area of employment within nonprofit social service agencies. A set of research questions deals with selected aspects of employment. The theoretical background consists of three main strands of theories: labor economics, nonprofit sector research from an economic point of view and economics of social services. First insights in the characteristics of the workforce within nonprofit social service agencies are given; thereby emphasizing labor as a main factor of production. The relationship of paid and volunteer work is included in this discussion. A theoretical deduction of macro- and microeconomic determinants of employment within this industry of the nonprofit sector is used as fundament of the empirical part of this study. A new database has been developed to gain empirical information on volume and structure of employment within social service agencies in Austria (2001). Additionally, information on the expectation of managers of nonprofit social service agencies concerning the development of employment within their organization has been collected.