On the Up: Voluntary Sector Wages in the UK 1998 - 2007

Since 1997 the UK Government has sought to expand the provision of public services by the independent nonprofit sector. With policies to build the capacity of the sector, public spending on voluntary organisations has grown from £2 billion in 1996/97 to £6.88 billion in 2005/06. Theory suggests that the comparative advantage of nonprofits lies in the mission-motivation of those who work in them, and predicts that motivated workers will accept lower wages. We examine sector wage differentials in time-series to show that growth in voluntary sector wages has outpaced the private and public sectors. This state intervention in the market has had big consequences for the make-up of the voluntary sector workforce

Where is the Warm Glow? The Labour Market in the Voluntary Sector

Why do people work in the voluntary sector? Is the sector distinct, with characteristics that differentiate it from the private and public sectors? Is it important to consider the existence of the so-called ‘third sector’ when analysing behaviour in the labour market? Is altruism really an important motivation for workers in this sector? This dissertation is concerned specifically with the labour market in the voluntary sector: that is, workers who are the paid employees of independent nonprofit organisations. Using a large, national dataset, we explore empirically the predictions of the economic theory of voluntary organisations. In particular, is there evidence for a ‘warm glow’, the extra utility that workers receive for working towards a goal that they share with their employer? Does this glow exist, and is it brighter in the voluntary sector? We examine in turn sector differences in wages, working hours, and find evidence that employment in the voluntary sector is significantly different in some characteristics from both the private and public sectors. The main economic theories of voluntary sector wage-setting rely on some formulation of ‘warm glow’ utility or intrinsic motivation derived from working for an organisation with a mission shared by motivated employees. This leads to a prediction of lower wages in the voluntary sector. The empirical findings in the existing literature have focussed on US data, and the results have been mixed. Using pooled cross-sectional and panel datasets based on UK employment data between 1997 and 2007, we show that there is some evidence of warm-glow wage discounts in the sector for male workers, but that these wage differences have been eroded as the sector has grown. Although there is not a significant sector wage difference found for women, there is evidence that they have also experienced faster wage growth in the voluntary sector than the private. There are significant sector differences in working hours within the Health & Social Work industries, particularly in overtime working. Workers in the voluntary sector work more hours of unpaid overtime, whilst those in the private sector work more hours of paid overtime. Controlling for overtime hours has a significant effect on sector wage differentials. In particular, accounting for unpaid overtime results in evidence of a warm-glow wage discount for female workers. We analyse this data at a time when the sector has been growing dramatically, driven by government policy to reform public services. Our findings suggest that this policy has had unintended consequences for the voluntary sector labour market

Where is the Warm Glow? Donated Labour and Nonprofit Wage Differentials in the Health and Social Work Industries

The “Warm Glow” theory of worker motivation in nonprofit organisations predicts that wages will be lower in the voluntary sector than for equivalent workers in the private and public sectors. Empirical findings, however, are mixed. Focussing on the Health & Social Work industries, we examine differences in levels of unpaid overtime between the sectors to test for the existence of a warm-glow effect. Although levels of unpaid overtime are significantly higher in voluntary sector, we find that this is insufficient to explain the wage premiums earned in this sector

Promoting charity accountability: Understanding disclosure of serious incidents

Charities are under increasing pressure to be accountable. Using a novel dataset, we provide the first analysis of the characteristics of charities voluntarily disclosing details of serious incidents that may threaten their organisation. Financial loss, fraud and theft, and personal behaviour account for a majority of serious incidents reported. Larger, older organisations that have previously been subject to a regulatory investigation are more likely to report serious incidents. However, it is smaller, younger charities where the regulator perceives there to be greater risk of organisational demise arising from the incident

The Determinants of Charity Misconduct

Charities in the UK have been the subject of intense media, political and public scrutiny in recent times; however our understanding of the nature, extent and determinants of charity misconduct is weak. Drawing upon a novel administrative dataset of 25,611 charities for the period 2006-2014 in Scotland, we develop models to predict two dimensions of charity misconduct: regulatory investigation and subsequent action. There have been 2,109 regulatory investigations of 1,566 Scottish charities over the study period, of which 31 percent resulted in regulatory action being taken. Complaints from members of the public are most likely to trigger an investigation, while the most common concerns relate to general governance and misappropriation of assets. Our multivariate analysis reveals a disconnect between the types of charities that are suspected of misconduct and those that are subject to subsequent regulatory action

Networks of Informal Caring: a Mixed-Methods Approach

Care for older people is a complex phenomenon, and is an area of pressing policy concern. Bringing together literature on care from social gerontology and economics, we report the findings of a mixed-methods project exploring networks of informal caring. Using quantitative data from the British Household Panel Survey (official survey of British households), together with qualitative interviews with older people and informal carers, we describe differences in formal care networks, and the factors and decision-making processes that have contributed to the formation of the networks. A network approach to care permits both quantitative and qualitative study, and the approach can be used to explore many important questions

Issues with the Measurement of Informal Care in Social Surveys: Evidence from the English Longitudinal Study of Ageing

Informal care plays a significant role in the care system for older people in the United Kingdom, and this is projected to increase considerably in the next three decades as the population ages. Understanding these trends requires a good quality measurement of informal care. In this study, we compare care givers’ responses to different informal care questions from the English Longitudinal Study of Ageing (ELSA) to investigate the influence of question design on the self-reporting of informal care. We also analyse spousal care dyads in order to model discrepancies in the reporting of care provision between spouses to provide an insight into the reliability of informal care measurements. We find that the most common measures used are likely to be under-estimating both the scale and scope of informal care, and we recommend careful consideration of the content of informal care survey questions in order to operationalise the measures of informal care activities

Pilot study protocol to inform a future longitudinal study of ageing using linked administrative data: Healthy AGeing in Scotland (HAGIS)

Introduction  Population ageing is a welcome testament to improvements in the social, economic and health circumstances over the life course. However, these successes necessitate that we understand more about the pathways of ageing to plan and cost our health and social care services, to support our ageing population to live healthier for longer and to make adequate provisions for retirement. Longitudinal studies of ageing facilitate such understanding in many countries around the world. Scotland presently does not have a longitudinal study of ageing, despite dramatic increases to its ageing population and its poor health record. Healthy AGeing in Scotland (HAGIS) constitutes the launch of Scotland’s first comprehensive longitudinal study of ageing.  Methods  A sample of 1000 people aged 50+ years will be invited to take part in a household social survey. The innovative sampling procedure used administrative data to identify eligible households. Anonymised survey responses will be linked to administrative data.  Ethics and dissemination  Ethics approval was obtained from the host institution for the study design and from the Public Benefits and Privacy Panel for administrative data linkage. Anonymised survey data will be deposited with the UK Data Service. A subset of survey data, harmonised with other global ageing studies, will be available via the Gateway to Global Aging platform. These data will enable powerful cross-country comparisons across the social, economic and health domains that will be relevant for national and international research.  Research publications from the HAGIS team will be disseminated through journal articles and national and international conferences. The findings will support current and future research and policy debate on ageing populations

The Big Bird Gets the Worm? How Size Influences Social Networking by Charitable Organizations

Current evidence suggests that nonprofits’ use of Twitter is not strongly related to organizational size, unlike other technological developments. However, this evidence is primarily based on studies of large nonprofit organizations. This study uses a random sample of charities, stratified by size, to present evidence that organization size is a significant factor in multiple dimensions of social media use: the percentage of charities owning a Twitter handle, activity on the site, and popularity within the charities’ network. Many charities are using Twitter, but larger charities are making more effective use of the platform to connect to other organizations. The very largest charities exhibit an overwhelming popularity effect in the network, whereas small charities are notably less active than their larger counterparts. Besides the substantive findings, we further demonstrate the methodological potential of using exponential random graph modeling to gain a deeper understanding of the characteristics of nonprofits’ social media networks

Community Impact of Public Processions

Research into the impact of public processions on community life in Scoltand.  The research paid particular attention to the impact of problematic processions, and how these processions could be better policed and managed