Promotions and Incentives in Nonprofit and For-Profit Organizations
AbstractUsing data from the 1992-95 Multi-City Study of Urban Inequality employer survey, the authors document a new empirical finding that workers are less likely to receive promotions in nonprofit organizations than in for-profit firms. The study also uncovers evidence that among the sampled employers, wage increases associated with promotion were of comparable magnitudes in the two sectors, as was the potential for within-job wage growth; nonprofits were less likely than for-profits to base promotions on job performance or merit; nonprofits were less likely to use output-contingent incentive contracts to motivate workers; and the observed difference in promotion rates between the nonprofit and for-profit sectors was more pronounced for high-skilled than for low-skilled workers. The authors also propose a theory that potentially explains the broad pattern of evidence they uncover, based on the idea that nonprofit workers are more intrinsically motivated (attracted to their work for reasons transcending material compensation) than are for-profit workers.
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Bibliographic InfoArticle provided by ILR Review, Cornell University, ILR School in its journal ILR Review.
Volume (Year): 60 (2007)
Issue (Month): 3 (April)
Postal: 381 Ives East, Cornell University, Ithaca, NY 14853-3901
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- Avner Ben-Ner & Matthew Ellman, 2013. "The contributions of behavioural economics to understanding and advancing the sustainability of worker cooperatives," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(1), pages 75-100, August.
- Francine D. Blau & Jed DeVaro, 2006.
"New Evidence on Gender Difference in Promotion Rates: An Empirical Analysis of a Sample of New Hires,"
NBER Working Papers
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- Francine Blau & Jed DeVaro, 2006. "New Evidence on Gender Differences in Promotion Rates: An Empirical Analysis of a Sample of New Hires," Working Papers 891, Princeton University, Department of Economics, Industrial Relations Section..
- Addison, John T. & Ozturk, Orgul Demet & Wang, Si, 2012. "Promotion and Wages in Mid-Career: Gender, Unionism, and Sector," IZA Discussion Papers 6873, Institute for the Study of Labor (IZA).
- DeVaro, Jed, 2011. "Using "opposing responses" and relative performance to distinguish empirically among alternative models of promotions," MPRA Paper 35175, University Library of Munich, Germany.
- Joseph Lanfranchi & Mathieu NARCY, 2012. "Effort and Monetary Incentives in Nonprofit and For-Profit Organizations," Working Papers halshs-00856261, HAL.
- Lanfranchi, Joseph & Narcy, Mathieu & Larguem, Makram, 2009. "Would you accept this job? An evaluation of the decision utility of workers in the for-profit and nonprofit sectors," MPRA Paper 16359, University Library of Munich, Germany.
- repec:pri:indrel:891 is not listed on IDEAS
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