Alasdair Rutherford, Research Economist

Presentation :: St Andrews Third Sector Research Forum

2011-10-27T16:31:00.000+01:00

I will be presenting my paper "Where is the Warm Glow? Donated Labour in the Health & Social Work Industries" at the annual symposium of the St Andrews Third Sector Research Forum on Friday 18th November 2011.

Abstract
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 donated labour. We explore the extent to which unpaid overtime can be explained by intrinsic motivation versus a gift exchange between employer and employee. We find that there are significant differences in overtime working between the sectors We also find significant gender differences in patterns of unpaid overtime working. These have an effect on sector wage differences, providing evidence of donated labour for female workers not found in other studies.

Blog Post: The 'Ins' and 'Outs' of Working in the Voluntary Sector

2011-09-17T15:37:00.000+01:00

I've written a blog post for The Guardian Voluntary Sector Network Blog, describing my findings on the movement of workers into and out of the voluntary sector.

Why do staff join and leave the voluntary sector?
Research fellow Alasdair Rutherford looks at the
makeup of workers moving in and out of the
voluntary sector

This post is based on my paper presented at the NCVO/VSSN Researching the Voluntary Sector Conference, and was featured on Third Sector's 'Best of the Blogs' on 15th Sept 2011.

NCVO/VSSN Researching the Voluntary Sector Conference 2011

2011-09-06T10:48:00.000+01:00

I will be presenting two papers at the NCVO/VSSN Researching the Voluntary Sector Conference on 7th and 8th September 2011.

The first paper "Switch In: Exploring the Changing Characteristics of Sector Switchers in the Voluntary Sector Workforce" builds on my analysis of workers in th voluntary sector, examining the characteristics of sector switchers. The analysis of sector switchers suggests that there is significant mobility into and out of the voluntary sector, to and from both the private and public sectors. Switching workers do tend to be younger and in less secure jobs: either temporary contracts, part-time, or with lower job tenures. There is some evidence that these less secure jobs are concentrated in the voluntary sector, from the differences between switchers moving into and out of the sector. Lastly, there is some suggestion that over the sample period there had been an increase in the number of workers with professional occupations entering the sector and workers in the health & social work industries.

The second paper "Understanding Volunteering Participation: A Quantitative Analysis of Volunteering Data in the Scottish Household Survey" is a project being conducted jointly with Volunteer Development Scotland. We analyse data on volunteering from the Scottish Household Survey to investigate the factors explaining geographical variation in volunteering participation. This project is funded by the Applied Quantitative Methods Network (AQMeN)

More details on the conference are available here. The working papers will be available online shortly.

Professionalisation of the voluntary sector should draw the line at executive pay

2011-06-27T17:34:00.000+01:00

Amidst growing public concern about widening pay gaps, Alasdair Rutherford asks whether we should be worrying about voluntary sector pay.

Although the British don’t like to talk about money, we do care what other people earn. Recent research from the Institute of Public Policy Research has shown that half of Britons say the pay gap in their workplace is too large, while over two-thirds say that the government should act to reduce the gap between high and low earners.

Workers in the voluntary sector certainly do not command the salaries of those in banking and finance or at the top of the civil service, but people do care how much of their donations are spent on a charity’s wage bill. Should we worry about voluntary sector pay?

Read my Opinion Piece on www.civilsociety.co.uk

AQMeN Small Grants Scheme Award

2011-06-13T11:12:00.000+01:00

I have been awarded a small grant, together with Volunteer Development Scotland (VDS), by the Applied Quantitative Methods Network (AQMeN) to analyse volunteering data in the Scottish Household Survey (SHS). The project will investigate the determinants of volunteering participation, and explore the potential to explain local variations in volunteering.

The aims of this project are:

conduct in-depth quantitative analysis of data on volunteering contained in the Scottish Household Survey (SHS);
develop quantitative methods skills within a third sector organisation, Volunteer Development Scotland (VDS), to enable on-going analysis of volunteering data in this dataset and other Scottish data;
disseminate findings (including the potential of the methods) to policymakers and practitioners in public and voluntary sectors;
develop a method for mapping potential volunteering participation at the local level, by linking the SHS to local area statistics.

The project will report later in the year. For more information, please contact me.

CONFERENCE :: EEA Congress 2010

2010-08-24T16:21:00.000+01:00

I will present a poster of my paper "On the Up: Voluntary Sector Wages in the UK 1998 to 2007" at the European Economic Association Congress 2010 at the University of Glasgow on 24 August 2010.

CONFERENCE :: WPEG 2010

2010-07-11T21:44:00.000+01:00

I will be presentng my paper "On the Up: Voluntary Sector Wages in the UK 1998 to 2007" at the Work Pensions and Labour Economics (WPEG) conference 2010 on 12th to 14th July at the University of Bristol.

The full paper is available here.

CONFERENCE :: EALE/SOLE 2010

2010-06-20T17:17:00.003+01:00

I presented a poster of my paper "On the Up: Voluntary Sector Wages in the UK 1998 to 2007" at the joint European Association of Labour Economists (EALE) and Society of Labor Economists (SOLE) conference at University College London (UCL) on 18th June 2010.

You can see a version of the poster in PDF format here, and a copy of the full paper here.

PUBLICATION :: European Journal of the History of Economic Thought

2010-06-01T19:48:00.000+01:00

My paper "Get By With a Little Help From My Friends: A Recent History of Charitable Organisations in Economic Theory" (forthcoming in the EJHET) is now available online from the journal here. The working paper version is still available here.

Abstract
Over the past 40 years the development of economic theories of charitable organisations has closely followed the literature on altruism. This paper argues that the debate around altruistic behaviour sparked by Richard Titmuss's analysis of the economics of blood donations in 1970 led to a succession of economic theories of charity, moving altruism from the fringes to the core of the theory. While initially based on the collective provision of public goods, they have now embraced the 'warm-glow' literature, but the full implications of behavioural economics for our understanding of charities have yet to be realised.

WORKSHOP :: University of Aberdeen

2010-04-25T21:28:00.000+01:00

I will be presenting my research in the Firms & Markets workshop at the University of Aberdeen on Thursday 6th May 2010.

The presentation is entitled: "Where is the Warm Glow? Paid Employment in the Voluntary Sector."

CONFERENCE :: SMYE

2010-04-10T16:41:00.000+01:00

I will be presenting my paper "On the Up: Voluntary Sector Wages in the UK 1998 - 2007" at the Spring Meeting of Young Economists (SMYE) on 15-17th April 2010.

The full paper is part of the Stirling Discussion paper series, and is available here.

Stirling Discussion Paper Series: On The Up

2010-03-30T12:10:00.000+01:00

My working paper "On the Up: Changing Trends in Voluntary Sector Wages in the UK 1998 - 2007" has now been released as part of the Stirling Discussion Paper Series. You can find the text of the paper here.

You can find the whole discussion paper series here.

Updated Working Paper :: Where is the Warm Glow?

2010-03-15T20:48:00.000Z

I have updated my working paper "Where is the Warm Glow? Donated Labour in the Health & Social Work Industries" to include a fixed effects estimation of the hours and wage equations using the limited panel structure of the UK Labour Force Survey. This allows me to control for unobserved worker heterogeneity, and shows that the findings from the pooled cross-section model are robust.

You can find the latest version of the working paper here.

Updated Working Paper :: One The Up

2010-01-15T17:53:00.000Z

I have updated my working paper "On the Up: Changing Trends in Voluntary Sector Wages in the UK 1998 - 2007" to include a fixed effects estimation of the wage equations using the limited panel structure of the UK Labour Force Survey. This allows me to control for unobserved worker heterogeneity, and shows that the findings from the pooled cross-section model are robust.

You can find the latest version of the working paper here.

Conference :: VSSN Day Conference

2009-11-25T09:09:00.000Z

I will be presenting my working paper "On the Up: Changing Trends in Voluntary Sector Wages in the UK 1998 - 2007" at the Voluntary Sector Studies Network (VSSN) Day Conference on Wednesday 2nd December in Birmingham. Details of the conference can be found here.

Abstract
Since 1997 the UK Government has sought to expand the provision of public services by the independent nonprofit, or “voluntary”, sector. With policies to build the capacity of the sector, public spending on voluntary organisations has grown from around £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. Examining sector wage differentials in time-series to show that growth in voluntary sector wages has outpaced the private and public sectors, we argue that this state intervention in the market has had big consequences for the make-up of the voluntary sector workforce.

WORKSHOP :: IAREP Economic Psychology of Giving, Public Goods and Leadership

2009-11-10T17:28:00.000Z

I will be presenting my paper "Where is the Warm Glow? Donated Labour and Nonprofit Wage Differentials in the Health & Social Work Industries" at the IAREP Workshop on the economic psychology of giving, public goods and leadership on Friday 13th and Saturday 14th November at the University of Kent.

The full text of the paper can be found here.

WORKING PAPER :: Where is the Warm Glow?

2009-10-01T12:52:00.001+01:00

My Working Paper "Where is the Warm Glow? Donated Labour and Nonprofit Wage Differentials in the Health and Social Work Industries" has been included in the Stirling Economics Discussion Papers series.

Abstract
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.

CONFERENCE :: SCVO Third Sector Research Conference 2009

2009-09-10T13:25:00.003+01:00

I will be presenting my paper "Comparing Job Quality Between the Private, Public and Voluntary Sectors: Evidence from WERS 2004 " at the Scottish Council of Voluntary Organisations (SCVO) Third Sector Research Conference on Monday 26th October 2009.

CONFERENCE :: 11th Annual INFER Conference

2009-08-11T08:44:00.003+01:00

I will be presenting my paper "The Good Life: Comparing Job Quality Between the Private, Public and Voluntary Sector"at the 11th Annual International Network for Economic Research (INFER) Conference.

The Conference takes place on 4th to 6th September 2009 at the University of Stirling.

My abstract is available here.

CONFERENCE :: NCVO/VSSN "Researching the Voluntary Sector" 2009

2009-08-04T17:31:00.002+01:00

I will be presenting my paper "Comparing Job Quality Between the Private, Public and Voluntary Sectors: Evidence from WERS 2004" at the NCVO/VSSN Researching the Voluntary Sector 2009 conference at the University of Warwick on 7th & 8th September 2009.

You can find the provisional programme for the conference here. The abstract for my paper is available here.

ACADEMIC VISIT :: Ludwig Maximilians University (LMU), Munich

2009-05-27T15:57:00.003+01:00

Outside the offices of the Centre for Economic Studies (CES) at the Ludwig Maximilians University (LMU) in Munich, Germany.

CONFERENCE :: European Civil Society Ph.D. Network

2009-05-12T13:54:00.000+01:00

I will be attending the 9th Annual Meeting of the European Civil Society Ph.D. Dissertation Network at Katholieke Universiteit Leuven, Belgium on May 28-31, 2009.

ACADEMIC VISIT :: Ludwig Maximilians University (LMU), Munich

2009-04-29T17:59:00.001+01:00

In May this year I will begin a three-month visit to the department of economics at the Ludwig Maximilians University (LMU) in Munich, Germany.

The visit has been funded by the UK Economic & Social Research Council (ESRC) through their Overseas University Visit scheme, and will be hosted by Prof. Ekkehart Schlicht.

In addition to the regular economics faculty, LMU hosts two institutes: the Center for Economic Studies (CES), which has a dedicated visitor's program for overseas researchers; and the Ifo Institute, an economic policy research institute which combines theoretical and empirical economic research.

CONFERENCE :: Scottish Economic Society

2009-04-20T14:09:00.004+01:00

I will be presenting my paper "Where is the Warm Glow? Nonprofit Wage Differentials and Donated Labour in the Health & Social Work Industries" at the Scottish Economic Society conference in Perth on 27th to 29th April 2009.

Abstract
Are workers in the voluntary sector paid less than their colleagues in the private or public sectors? In the UK the voluntary (or nonprofit) sector makes up about 5% of the workforce, with 60% of these workers employed in the health and social work industries. Using data from ten years of the UK Labour Force Survey (LFS), this paper finds significant voluntary sector wage premiums in these industries, contradicting "warm glow" theories of nonprofit wage-setting. Even after imputing adjusted wages to account for sector differences in unpaid overtime, little evidence is found for a nonprofit "warm glow" wage discount.

CONFERENCE :: European Civil Society Ph.D. Network

2009-03-25T11:01:00.002Z

I will be attending the 9th Annual Meeting of the European Civil Society Ph.D. Dissertation Network at Katholieke Universiteit Leuven, Belgium on May 28-31, 2009.

Abstract: In Search of the “Warm Glow”: The Labour Market in the Voluntary Sector

How does pay determination in the voluntary sector differ from the public and private sectors? Are workers in the voluntary sector paid more or less than their colleagues in the private or public sectors? The “warm glow” theory of motivated agents predicts that workers in the voluntary sector will make “donations” to their employer in the form of lower wages or additional unpaid hours. My paper uses data from the United Kingdom on workers and organisations in the private, public and voluntary sectors to test this theory by exploring the effects on wages of both individual workers’ characteristics and organisational features.

If workers are to get a warm glow from their voluntary sector job, then we should expect to find that these workers gain satisfaction from their jobs, feel loyal to their employer, and share the mission and goals of the organisation. I use a linked employer-employee dataset to investigate this theory empirically. In examining sector differences in job satisfaction, I also investigate the role of relative earnings between workers in determining job satisfaction in voluntary organisations. I find some evidence of higher job satisfaction within the voluntary sector, but this seems to be explained by greater levels of pay equality rather than by higher utility from work.

Overall, my results suggest that the ‘warm glow’ theory of voluntary sector wage determination is insufficient to explain observed behaviour in the labour market, particularly within the health & social work industries.

CONFERENCE :: International Labour Process Conference 2009

2009-03-10T21:58:00.004Z

I will be presenting my paper "In Search of the Warm Glow: Estimating Pay & Job Satisfaction in the Private, Public & Voluntary Sectors" at the International Labour Process conference 2009 in Edinburgh on 6 - 8th April 2009.

CONFERENCE :: Scottish Graduate programme in Economics (SGPE), Peebles

2008-12-18T19:19:00.004Z

I will be presenting my paper "In Search of the “Warm Glow”: Job Satisfaction in the Private, Public and Voluntary Sectors Organisational Characteristics in Employer-Employee Matched Data" at the Scottish Graduate programme in Economics (SGPE) Annual Conference in Peebles on 15th/16th January 2009.

CONFERENCE :: History of Public Economics Conference

2008-11-14T12:28:00.002Z

I will be presenting my paper Get By With a Little Help From My Friends: A Recent History of Charity in Economic Theory at the Public Goods, Externalities, Public Decision Making: A Perspective From The History Of Economic Thought Conference in Paris in December 2008.

The conference is part of the European Science Foundation (ESF) programme "Public Goods, Public Projects, Externalities" and is being organised by ERMES / Panthéon Assas University and CNRS, Paris.

How will the Voluntary Sector be affected by the recession?

2008-11-14T08:52:00.001Z

The flagging economy will mean that funding sources for charities will be squeezed, with those dependent on one source more vulnerable than those with a more diversified portfolio of funders. Beyond the more obvious tightening in budgets for both individual and corporate donors, the fall in the stock market has hit the investment portfolios of charitable trusts and this could be expected to affect the income they have available to make grants to charities and community organisations. Of course, the reserves of the voluntary organisations themselves will have been hit by drops in equity values, and those dependent on income from their reserves to fund the “core costs” that donors often don’t support may find themselves short.

Many charities and community organisations are small, and they will be affected in the same way that small businesses are being hit by the downturn. Cash flow can be an issue, particularly when it is difficult for small organisations to get credit. Where a private firm facing these problems can go to its shareholders to re-finance through equity, as many of the banks have done, this is not an option for a non-profit organisation. There have been calls for help for small businesses, and many voluntary organisations could find themselves in similar positions. Government pledges to help small business by paying invoices promptly will benefit community organisations reliant on government grants or contracts. However, organisations which have grants that require them to spend first and then claim back the funds could be in more difficulty if cash-flow is tight.

There is some evidence that the effect of an economic downturn on the voluntary sector is lagged, and so there could be some delay before the full impact is felt by the sector. This may particularly be the case for fundraising income, with worse to come. It is the volatility that we are seeing in the economy, as much downturn itself, that makes these very challenging times for all small organisations, and charities could face some particular problems in riding out the storm.

Symposium :: "Management Research for the Third Sector", St. Andrew's

2008-10-08T16:29:00.002+01:00

I will be presenting my paper "Exploring voluntary sector pay at the industry level: evidence form the UK Labour Force Survey" at the Management Research for the Third Sector Research Symposium on 20th November 2008 at the School of Management, University of St. Andrew's.

CONFERENCE :: NCVO/VSSN "Researching the Voluntary Sector"

2008-09-13T19:30:00.004+01:00

Presented my working paper "Exploring Voluntary Sector Pay at the Industry Level: Evidence from the UK Labour Force Survey (2008)" at the Skills & Workforce parallel session of the NCVO / VSSN Conference at the University of Warwick on 9th September 2008.