Are Workers More Intrinsically Motivated in the Non-profit than in the Private For-Profit Sector?

Narcy, Mathieu

Are Workers More Intrinsically Motivated in the Non-profit than in the Private For-Profit Sector? - 2009.


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The non-profit sector differs from the for-profit sector both in its more socially-oriented goals and in its different entrepreneurship methods. It may therefore appeal to workers whose job choices are guided by non-monetary considerations. Non-profit organizations may thus attract more intrinsically motivated workers than for-profit firms. Our empirical analysis uses the French Labor-Force Survey. The results show that non-profit workers – unlike for-profit workers – deliberately agree to work for lower wages than they could have obtained in the for-profit sector. These results therefore suggest that non-profit workers report higher levels of intrinsic motivation than their for-profit counterparts.

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