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Identifier to cite or link to this item: https://hdl.handle.net/10086/28285

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Title
Compensation and Intrinsic Motivation in Nonprofit and For-Profit Organizations
Creator
Creator Name
DeVaro, Jed DeVaro, Jed
Affiliation
Affiliation Name
California State University
Creator Name
Maxwell, Nan Maxwell, Nan
Affiliation
Affiliation Name
Mathematica Policy Research
Creator Name
Morita, Hodaka Morita, Hodaka
Affiliation
Affiliation Name
The University of New South Wales
Editor
Contributor Name
Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University
Key Word
nonprofits
incentive pay
intrinsic motivation
compensating differentials
fringe benefits
training
JEL
J33
L30
L29
Abstract
We develop a theoretical model in which for-profit and nonprofit employers compete to hire a worker who derives intrinsic motivation from the nonprofit’s social mission. We also use a unique data set of California establishments to provide new evidence on sectoral differences in pay and HRM systems, finding a greater incidence of training and benefits in nonprofits, lower wages (with the wage gap increasing in skill level), and less incentive pay than in for-profits. The model is used to interpret both this new evidence and other empirical results from the literature, including the inconclusive sign of the FP-NP wage differential.
Publisher
Institute of Economic Research, Hitotsubashi University
Issued Date
2016-03
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
CEI Working Paper Series, No. 2015-10
Number of Pages
46
Appears in Collections
CEI Working Paper Series
URL
https://hdl.handle.net/10086/28285