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Nonprofit/For-Profit Status and Earning Differentials
in the Japanese At-home Elderly Care Industry:
Evidence from Micro-level Data on Home Helpers and Staff Nurses
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| Haruko Noguchi and Satoshi Shimizutani
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| In April 2000, Japan embarked on a reform of its health care market. Along with the introduction of the long-term care insurance scheme, the government for the first time allowed for-profit operators to compete head-on with non-profit operators in the provision of at-home care services. Taking advantage of a unique and rich micro-level survey, this study is the first to examine wage differentials between the nonprofit and the for-profit sector in Japan’s nursing care industry, concentrating on home helpers and staff nurses. Controlling for nonrandom unobserved selection biases, our results show that a nonprofit wage premium exists. This finding supports the hypothesis that nonprofit providers operate under non-distributional constraints. |
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| Copyright (C) 2003 by Institute of Economic
Research.All rights reserved. |
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