Rising Wages in Ballet: Are Donations Responsible?

This paper determines the effect of voluntary contributions on the output and quality of nonprofit performing arts organizations, specifically classical ballet companies. The effect of ticket revenue on ballet companies is also estimated. The study uses newly presented data consisting of firm’s reported income, divided by source, and weekly wages of ballet dancers obtained from collective bargaining agreements. Using dancers’ wages as a proxy for quality, the study finds that contributions seem mainly to support increases in quality. However, there is a combined effect of increasing output and quality with ticket revenue. The source of variation in donations is also investigated by estimating the probability that a city has a resident ballet company. Together, these estimates may explain further data presented that shows ballet dancers salaries increasing both in magnitude and standard deviation (across firms and dancer ranks) over time.