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EnglishWe present a general equilibrium model where manufacturing and service firms coexist. The quality of the service depends on the workers’ effort. Two institutional regimes are compared, in which the service-providing firms are for-profit enterprises or, alternatively, nonprofit organizations. The paper shows that the employment level, aggregate income and both the quantity and the quality of the service are higher when the service-providing firms are nonprofit organizations. Moreover, switching from one regime to the other has redistributive effects, and the equilibrium associated with the presence of nonprofit organizations is Pareto-superior if they enjoy a significant advantage at motivating their employees.
| Titolo: | Profit versus non-profit firms in the service sector: an analysis of the employment and welfare implications |
| Tipologia specifica: | journal article - articolo |
| Tutti gli autori: | BONATTI, LUIGI; BORZAGA, CARLO; MITTONE, LUIGI |
| Data di pubblicazione: | 2005 |
| Abstract (eng): | We present a general equilibrium model where manufacturing and service firms coexist. The quality of the service depends on the workers’ effort. Two institutional regimes are compared, in which the service-providing firms are for-profit enterprises or, alternatively, nonprofit organizations. The paper shows that the employment level, aggregate income and both the quantity and the quality of the service are higher when the service-providing firms are nonprofit organizations. Moreover, switching from one regime to the other has redistributive effects, and the equilibrium associated with the presence of nonprofit organizations is Pareto-superior if they enjoy a significant advantage at motivating their employees. |
| Rivista: | |
| Nelle collezioni: | 1.1.01 Articoli/Saggi in rivista - Journal Articles/Essays |
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