How does the environment of an organization influence whether workers voluntarily provide effort? We study the power relationship between a non-profit unit (e.g. university department, NGO, health trust), where workers care about the result of their work, and a bureaucrat, who supplies some input to the non-profit unit, but has opportunity costs in doing so (e.g. Dean of faculty, corrupt representative, government agency). We find that marginal changes in the balance of power eventually have dramatic effects on donated labor. We also identify when strengthening the non-profit unit decreases and when it increases donated labor.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
3685.
Find related papers by JEL classification: L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General M50 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - General H10 - Public Economics - - Structure and Scope of Government - - - General H40 - Public Economics - - Publicly Provided Goods - - - General
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