{"title":"The Effect of State Minimum Wage Increases on Nonprofit Organizations","authors":"S. Balsam, Connie X. Mao, Min Xu, Y. Zhang","doi":"10.1177/08997640221138266","DOIUrl":null,"url":null,"abstract":"The impact of minimum wage increases on employment has been extensively examined with mixed results. We extend the literature by hypothesizing and showing a differential impact of state-level minimum wage increases on nonprofit organizations as opposed to for-profit organizations. While we find that increases in minimum wages reduce employment growth in both types of organizations, this decrease is substantially larger for nonprofit organizations. We also find that investment in automation, that is, information technology, rises in nonprofits postminimum wage increase, consistent with the substitution of capital for labor. Minimum wage increases also increase the likelihood of nonprofit exit. JEL: J38, J68, L","PeriodicalId":48235,"journal":{"name":"Nonprofit and Voluntary Sector Quarterly","volume":" ","pages":""},"PeriodicalIF":2.3000,"publicationDate":"2022-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Nonprofit and Voluntary Sector Quarterly","FirstCategoryId":"90","ListUrlMain":"https://doi.org/10.1177/08997640221138266","RegionNum":2,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"SOCIAL ISSUES","Score":null,"Total":0}
引用次数: 1
Abstract
The impact of minimum wage increases on employment has been extensively examined with mixed results. We extend the literature by hypothesizing and showing a differential impact of state-level minimum wage increases on nonprofit organizations as opposed to for-profit organizations. While we find that increases in minimum wages reduce employment growth in both types of organizations, this decrease is substantially larger for nonprofit organizations. We also find that investment in automation, that is, information technology, rises in nonprofits postminimum wage increase, consistent with the substitution of capital for labor. Minimum wage increases also increase the likelihood of nonprofit exit. JEL: J38, J68, L
期刊介绍:
Nonprofit and Voluntary Sector Quarterly, the journal of the Association for Research on Nonprofit Organizations and Voluntary Action, is an international, interdisciplinary journal that seeks to enhance the quality of life and general welfare of humanity through effective and appropriate voluntary action by reporting on research and programs related to voluntarism, citizen participation, philanthropy, and nonprofit organizations in societies around the world.