Wage Differentials between For-Profit and Non-Profit Firms: A Case Study of the Nursing Care Industry in Japan

Abstract

This study compares the impacts of operator type-non-profit and for-profit-on worker wages. Focusing on the Japanese home care labor market, we compare wage distributions according to whether the operator is a for-profit or non-profit. In addition to the average wage gap, on which previous studies have focused, this study also estimates the distribution of the wage gap, conditional on workers’ background attributes. The results show that the wage gap between for-profit and non-profit firms differs significantly depending on the background attributes of workers.