AIEL Series in Labour Economics

AIEL Series in Labour Economics

AIEL Series in Labour Economics For further volumes: http://www.springer.com/1863-916x

Sergio Destefanis Marco Musella Editors Paid and Unpaid Labour in the Social Economy An International Perspective Physica-Verlag A Springer Company

Editors Professor Sergio Destefanis Professor Marco Musella Università degli Studi di Salerno Università degli Studi Dipartimento di Scienze di Napoli Federico II Economiche e Statistiche Facoltà di Scienze Politiche Via Ponte Don Melillo Via Rodinò 22 84084 Fisciano (SA) 88138 Napoli Italy Italy destefanis@unisa.it marmusel@unina.it The publication of this book has been made possible thanks to the financial support of the Ministero dell Università e della Ricerca and of the Dipartimento di Scienze Economiche e Statistiche, Università degli Studi di Salerno. ISBN: 978-3-7908-2136-9 e-isbn: 978-3-7908-2137-6 DOI: 10.1007/978-3-7908-2137-6 Library of Congress Control Number: 2008943922 AIEL Series in Labour Economics ISSN: 1863-916X 2009 Physica-Verlag Heidelberg This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Physica-Verlag. Violations are liable for prosecution under the German Copyright Law. The use of registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: SPi Publishing Services Printed on acid-free paper 9 8 7 6 5 4 3 2 1 springer.com

Contents Introduction and Overview... 1 Sergio Destefanis and Marco Musella 1 A Comprehensive Interpretation of Voluntary and Under-Remunerated Work... 11 Carlo Borzaga 1.1 Introduction... 11 1.2 The Evolution of the Nonprofit Sector and of Voluntary Work... 13 1.3 Work in Nonprofit Organizations: Interpretations and Empirical Verification... 15 1.4 The Motives Underlying Work Choices... 18 1.5 The Distinctive Features of Social and Collective-Interest Services... 21 1.6 A Possible Encounter Between Multiple Motivations and the Sector s Characteristics... 24 1.7 Concluding Remarks... 29 References... 30 2 How Nonprofit Organizations Manage Risk... 33 Dennis R. Young 2.1 Introduction... 33 2.2 Special Issues of Risk for Nonprofits... 34 2.3 Views from the Literature... 37 2.4 Causes of Inefficient Nonprofit Decision Making Under Risk... 39 2.5 Nonprofit Strategic Decisions Under Risk... 41 2.6 Concluding Remarks... 44 v

vi Contents References... 45 3 Property Rights and Incentives in Social Cooperatives... 47 Marco Musella and Roberta Troisi 3.1 Introduction... 47 3.2 Property Rights and Control in Social Cooperatives: Why Incentivize?... 49 3.3 The Janus Face of Social Cooperatives: What to Incentivize... 52 3.4 The Communal Entitlement of the Definition of Incentives: A Possible Model... 55 3.5 Incentives Beyond Wages: Bridging the Gap Between Economics and Organization Theory by Using Property Rights... 56 3.6 Concluding Remarks... 59 References... 60 4 The Supply of Labour and Household Production... 63 João R. Sanson 4.1 Introduction... 63 4.2 The Endowment of Labour... 65 4.3 A General Household Production Model... 68 4.4 A Simple Case with Occupational Choice... 71 4.5 The Net Result from Labour Supply... 76 4.6 Concluding Remarks... 78 References... 79 5 Working for Nothing and Being Happy. The Determinants of the Satisfaction of Volunteers and Paid Workers... 81 Miriam Michelutti and Marina Schenkel 5.1 Introduction... 81 5.2 What is Voluntary Work?... 82 5.3 The Satisfaction of Volunteers and the Supply of Voluntary Work... 83 5.4 The Dataset... 84 5.5 The Features of Volunteers and Paid Workers... 85 5.6 Comparing Volunteers and Paid Workers Motivations, Attitudes and Satisfaction... 86 5.7 Ordered Logit Analysis: The Determinants of Volunteers and Paid Workers Satisfaction... 89 5.8 Concluding Remarks... 94

Contents vii References... 94 6 Perceived Fairness and Worker Well-Being in Public, For-Profit and Nonprofit Firms: Evidence from the Italian Social Service Sector... 97 Ermanno Tortia 6.1 Introduction... 97 6.2 The Descriptive Analysis of Procedural and Distributive Fairness... 99 6.3 The Influence of Procedural and Distributive Fairness on Worker Well-Being... 104 6.4 Concluding Remarks... 112 References... 113 7 Wage Effects of Recruitment Methods: The Case of the Italian Social Service Sector... 115 Michele Mosca and Francesco Pastore 7.1 Introduction... 115 7.2 Theoretical and Empirical Evidence on Informal Networks... 116 7.3 Aims and Econometric Methodology... 119 7.4 Data and Variables... 121 7.5 Wage and Human Capital Differentials by Organization... 123 7.6 Wages and Hiring and Job-Search Methods... 127 7.7 Concluding Remarks... 133 Appendix... 136 References... 140 8 The Productivity of Volunteer Labour: DEA-Based Evidence from Italy... 143 Sergio Destefanis and Ornella Wanda Maietta 8.1 Introduction... 143 8.2 The Productivity of Volunteer Labour: A Survey... 144 8.3 The Empirical Approach... 147 8.4 Some Descriptive Evidence... 150 8.5 Some Econometric Evidence... 153 8.6 Concluding Remarks... 156 Appendix... 157 References... 163 9 Volunteer Labour Supply: Micro-econometric Evidence from Italy... 165 Damiano Fiorillo

viii Contents 9.1 Introduction... 165 9.2 The Empirical Hypotheses... 167 9.3 The Empirical Literature... 168 9.4 The Data... 169 9.5 The Econometric Strategy... 171 9.6 Concluding Remarks... 179 Appendix... 180 References... 180 10 Voluntary Associations and Trustworthiness: An Empirical Examination at Italian Regional Level... 183 Giacomo Degli Antoni 10.1 Introduction... 183 10.2 Empirical Analysis: Data and Methodology... 185 10.3 The Empirical Results... 190 10.4 Concluding Remarks... 192 Appendix... 195 References... 195 11 A Comparison of Wage Inequality in For-Profit, Nonprofit and Local Government Organizations: Nursing Homes in the Midwestern US... 197 Avner Ben-Ner, Ting Ren and Darla Flint Paulson 11.1 Introduction... 197 11.2 Theory and Hypotheses... 199 11.3 The Empirical Methodology... 207 11.4 Results... 212 11.5 Discussion and Conclusion... 214 References... 218 12 Tacit Knowledge and Volunteers Empowerment in the Fair Trade Sector... 221 Renata Livraghi and Gabriella Pappadà 12.1 Introduction... 221 12.2 Fair Trade Market: An Overview... 223 12.3 Capabilities Approach and Social Constructivism in the Fair Trade Community... 226 12.4 Comparative Results from the Fair Project... 229 12.5 A Deeper Analysis of the Italian Case Studies... 240

Contents ix 12.6 Concluding Remarks... 241 References... 243 13 The Re-Emergence of Social Enterprises in CEE and the CIS... 245 Giulia Galera 13.1 Introduction... 245 13.2 Institutional Pluralism and the Emergence of Social Enterprise as a Concept... 247 13.3 Social Enterprises in CEE and the CIS... 253 13.4 Social Enterprise, Economic and Social Development... 257 13.5 Concluding Remarks... 259 References... 260

Contributors Ben-Ner, Avner Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455, USA Borzaga, Carlo Department of Economics, University of Trento and European Research Institute on Cooperative and Social Enterprises, Via Inama 5, 38100 Trento, Italy Degli Antoni, Giacomo Centro interuniversitario EconomEtica, University of Milano-Bicocca, Edificio U9, Viale dell Innovazione 10, 20126 Milano, Italy Destefanis, Sergio Department of Economics and Statistics and CELPE, University of Salerno, Via Ponte Don Melillo, 84084 Fisciano (SA), Italy Fiorillo, Damiano Department of Economics, University of Napoli Parthenope, Via Medina, 40, 80133 Napoli, Italy Flint Paulson, Darla Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455, USA Galera, Giulia European Research Institute on Cooperative and Social Enterprises, University of Trento, Via Inama 5, 38100 Trento, Italy Livraghi, Renata Department of Education and Territorial Sciences, University of Parma, Borgo Carissimi 10, 43100 Parma, Italy xi

xii Contributors Maietta, Ornella Wanda Department of Agricultural Economics and Policy, University of Napoli Federico II, and Centro per la Formazione in Economia e Politica dello Sviluppo Rurale, Via Università 96, 80055 Portici (NA), Italy Michelutti, Miriam Department of Economics, University of Udine, Via Tomadini, 30/a, 33100 Udine, Italy Mosca, Michele Department of Economic Theory and Applications, University of Napoli Federico II, Via Rodinò 22, 80138 Napoli, Italy Musella, Marco Department of Economic Theory and Applications, University of Napoli Federico II, Via Rodinò 22, 80138 Napoli, Italy Pappadà, Gabriella Faculty of Management and Organization Sciences, University of Viterbo La Tuscia, Via S. Maria In Gradi 4, 01100 Viterbo, Italy Pastore, Francesco IZA, Bonn and Faculty of Law, University of Napoli II, Palazzo Melzi, Piazza Matteotti, 81055 Santa Maria Capua Vetere (CE), Italy Ren, Ting Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455, USA Sanson, João R. Department of Economics, Federal University of Santa Catarina, 88049-970 Florianopolis (SC), Brazil Schenkel, Marina Department of Economics, University of Udine, Via Tomadini, 30/a, 33100 Udine, Italy Tortia, Ermanno C. Department of Economics, University of Trento and European Research Institute on Cooperative and Social Enterprises, Via Inama 5, 38100 Trento, Italy Troisi, Roberta Department of Economics and Statistics, University of Salerno, Via Ponte Don Melillo, 84084 Fisciano (SA), Italy Young, Dennis R Nonprofit Studies Program, Andrew Young School of Policy Studies, Georgia State University, Atlanta, Georgia 30303, USA

List of Abbreviations Adj. R 2 AIEL CECOP CE CEE CNA CIS Coeff. DEA ECHP EFTA EMES (referring to EMES European Research Network) EV FIVOL FEO FP FT G ISFOL Adjusted R 2, coefficient of determination corrected for degrees of freedom Associazione Italiana Economisti del Lavoro, the Italian Association of Labour Economics Confédération Européenne des Coopératives de Production, the European Confederation of worker cooperatives, social cooperatives and social and participative enterprises Certainty equivalent Central and Eastern Europe Certified nursing assistants Commonwealth of Independent States Coefficient Data envelopment analysis European Community Household Panel European Fair Trade Association Emergence de l Entreprise Sociale Expected value (referring to FIVOL-FEO dataset) FIVOL: Fondazione Italiana per il Volontariato, the Italian Foundation for Voluntary Service; FEO: Fondazione Europa Occupazione: Impresa e Solidarietà, the Foundation Europe, Employment, Enterprise and Solidarity For-profit organizations, firms Fair Trade Public, or local government, organizations Istituto per lo sviluppo della formazione professionale dei lavoratori, the Institute for the Development of the Vocational Training of Workers xiii

xiv ISTAT IV LPN LLR Max MDH MDHS Min MNHES N NH NP NP1 NP2 OLS OSCAR OU Pseudo-R 2 RN R 2 SHIW St. Dev. UNDP List of Abbreviations Istituto nazionale di Statistica, the Italian National Institute of Statistics Instrumental variable Licensed practical nurses Log Likelihood Ratio Maximum Minnesota State Department of Health Minnesota State Department of Human Services Minimum Minnesota Nursing Homes Employer Survey Number of observations Nursing home Nonprofit organizations Social cooperatives and religious nonprofit organizations Non-religious nonprofit organizations Ordinary least squares Online Survey, Certification and Reporting data of nursing facilities Operating unit McFadden s measure of fit for the binary regression Registered nurses Coefficient of determination Survey of household income and wealth, Bank of Italy Standard deviation United Nations Development Programme