Table 1: Key Variable definitions and summary statistics

Variable	Definition	Total (n=1,084)	For-profit (n=173)	Not-for-profit (n=911)
Mean	Standard deviation	Mean	Standard deviation	Mean	Standard deviation
1. Employees' characteristics
month	Monthly wage including various types of compensation	245,454.300	(99,248.270)	160,255.500	(61,035.020)	261,633.700	(96,833.300)
day	Daily wage including various types of compensation	11,977.690	(4,283.691)	8,535.509	(2,648.747)	12,631.370	(4,222.813)
hour	Hourly salary including various types of compensation	1,515.744	(522.665)	1,050.647	(246.432)	1,604.067	(514.491)
lgmonth	Natural logarithm of monthly wage	12.315	(0.468)	11.895	(0.459)	12.395	(0.426)
lgday	Natural logarithm of daily wage	9.325	(0.371)	9.007	(0.300)	9.385	(0.352)
lghour	Natural logarithm of hourly wage	7.268	(0.330)	6.934	(0.208)	7.331	(0.311)
male	=1 if male	0.045	(0.208)	0.017	(0.131)	0.050	(0.219)
age	Years of age	34.001	(11.683)	34.919	(11.949)	33.827	(11.631)
sqage	Years of age squared	1,292.438	(932.276)	1,361.301	(933.382)	1,279.361	(932.004)
age20	=1 if age is equal to or greater than 20 and less than 30	0.486	(0.500)	0.445	(0.498)	0.494	(0.500)
age30	=1 if age is equal to or greater than 30 and less than 40	0.201	(0.401)	0.208	(0.407)	0.200	(0.400)
age40	=1 if age is equal to or greater than 40 and less than 50	0.185	(0.389)	0.197	(0.399)	0.183	(0.387)
age50	=1 if age is equal to or greater than 50 and less than 60	0.103	(0.305)	0.127	(0.334)	0.099	(0.299)
age60	=1 if age is equal to or greater than 60	0.023	(0.150)	0.023	(0.151)	0.023	(0.150)
exp	Years of experience	8.019	(8.175)	6.682	(7.803)	8.273	(8.223)
sqexp	Years of experience squared	131.076	(252.487)	105.181	(226.964)	135.993	(256.868)
educ1	=1 if university graduate	0.078	(0.269)	0.116	(0.321)	0.071	(0.258)
educ2	=1 if community college graduate	0.551	(0.498)	0.480	(0.501)	0.564	(0.496)
educ3	=1 if professional training school graduate	0.242	(0.428)	0.237	(0.426)	0.243	(0.429)
educ4	=1 if others	0.129	(0.336)	0.168	(0.375)	0.122	(0.327)
q1	=1 if qualified child care worker	0.708	(0.455)	0.665	(0.473)	0.717	(0.451)
q21	=1 if regular worker	0.686	(0.464)	0.728	(0.446)	0.678	(0.467)
q22	=1 if nonregular worker with long hours of work	0.058	(0.234)	0.092	(0.291)	0.052	(0.221)
q23	=1 if care worker with short hours of work	0.059	(0.236)	0.040	(0.198)	0.063	(0.242)
q4	=1 if chief or director of child care workers	0.040	(0.195)	0.064	(0.245)	0.035	(0.184)
II. Facility characteristics
profit	=1 if profit	0.160	(0.366)	-	-	-	-
temply	Number of employees	22.559	(10.522)	9.659	(2.448)	25.009	(9.642)
emp1	=1 if number of employees is equal to or less than 5	0.007	(0.086)	0.023	(0.151)	0.004	(0.066)
emp2	=1 if number of employees is greater than 5 and equal to or less than	0.110	(0.313)	0.630	(0.484)	0.011	(0.104)
emp3	=1 if number of employees is greater than 10	0.883	(0.322)	0.347	(0.477)	0.985	(0.123)
q931x	=1 if special care provided (extra hours of care)	0.685	(0.465)	0.653	(0.477)	0.692	(0.462)
q93x	Total hours of care	11.441	(2.253)	10.243	(5.356)	11.668	(0.543)
lgq93x	Natural logarithm of total hours of care	2.387	(0.447)	2.024	(1.043)	2.456	(0.046)
lambda	Selectivity for monthly wage (lambda profit)	-	-	0.069	(0.165)	0.014	(0.067)
lambda	Selectivity for daily wage (lambda profit)	-	-	0.339	(0.028)	-0.002	(0.039)
lambda	Selectivity for hourly wage (lambda profit)	-	-	0.213	(0.015)	0.130	(0.051)

Note a-c describes significant mean difference between the for-profit and nonprofit sectors at 5%, 10%, and 15% levels, respectively, based on F-statistics of ANOVA.