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Would you accept this job? An evaluation of the decision utility of workers in the for-profit and nonprofit sectors

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Author Info
Lanfranchi, Joseph
Narcy, Mathieu
Larguem, Makram

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Abstract

In this paper, we intend to evaluate the determinants of the decision utility of workers from the for-profit and nonprofit sectors. In our setting, decision utility is the weight assigned by workers to the expected benefits from job offers. For that purpose, we use the methodology of conjoint analysis that collects experimental data on workers’ stated preferences towards hypothetical job offers characterized by ten attributes. Intrinsic motivation of nonprofit workers is investigated by specifically analyzing the influence on decision utility of three of these attributes, namely wages, working time and loyalty from the employer. The results show evidence of motivational differences between the two groups. First, nonprofit workers attain their maximum decision utility at a longer working time, showing superior intrinsic motivation for work. Furthermore, they are ready to abandon a higher percentage of their wage in order to work for another extra hour than for-profit workers as long as the working week is inferior to 33 hours. Finally, our findings show that for-profit workers evaluate more highly job offers with labour contract including explicit clause where higher effort is exchanged for employer’s loyalty. In contrast, nonprofit workers do not obtain higher utility from such a deal. We interpret this result as evidence of their intrinsic motivation. As the nature of the implicit goals pursued in the nonprofit sector provides them with high work morale, they do not obtain any gain in utility from an explicit clause of employer’s loyalty.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16359.

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Date of creation: Apr 2009
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Handle: RePEc:pra:mprapa:16359

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Related research
Keywords: nonprofit workers; intrinsic motivation; conjoint analysis;

Find related papers by JEL classification:
J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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References listed on IDEAS
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  1. Andrew E. Clark, 2004. "What makes a good job? Evidence from OECD countries," DELTA Working Papers 2004-28, DELTA (Ecole normale supérieure). [Downloadable!]
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  3. Michele Mosca & Marco Musella & Francesco Pastore, 2006. "Relational Goods, Monitoring and Non-Pecuniary Compensations in the Nonprofit Sector: The Case of the Italian Social Services," IZA Discussion Papers 2254, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Timothy Besley & Maitreesh Ghatak, 2005. "Competition and Incentives with Motivated Agents," American Economic Review, American Economic Association, vol. 95(3), pages 616-636, June. [Downloadable!]
    Other versions:
  5. Roland Benabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Blackwell Publishing, vol. 70(3), pages 489-520, 07. [Downloadable!] (restricted)
  6. Christopher J. Ruhm & Carey Borkoski, 2003. "Compensation in the Nonprofit Sector," Journal of Human Resources, University of Wisconsin Press, vol. 38(4). [Downloadable!] (restricted)
  7. Arne L. Kalleberg & Stephen Vaisey, 2005. "Pathways to a Good Job: Perceived Work Quality among the Machinists in North America," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 43(3), pages 431-454, 09. [Downloadable!] (restricted)
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  10. van Beek, Krijn W. H. & Koopmans, Carl C. & van Praag, Bernard M. S., 1997. "Shopping at the labour market: A real tale of fiction," European Economic Review, Elsevier, vol. 41(2), pages 295-317, February. [Downloadable!] (restricted)
  11. Green, Paul E, 1974. " On the Design of Choice Experiments Involving Multifactor Alternatives," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 1(2), pages 61-68, Se.
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  13. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, 07. [Downloadable!] (restricted)
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  14. Andrew E. Clark, 2009. "Work, Jobs and Well-Being across the Millennium," OECD Social, Employment and Migration Working Papers 83, OECD, Directorate for Employment, Labour and Social Affairs. [Downloadable!]
    Other versions:
  15. repec:dgr:uvatin:20020022 is not listed on IDEAS
  16. Preston, Anne E, 1989. "The Nonprofit Worker in a For-Profit World," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 438-63, October. [Downloadable!] (restricted)
  17. Kreps, David M, 1997. "Intrinsic Motivation and Extrinsic Incentives," American Economic Review, American Economic Association, vol. 87(2), pages 359-64, May. [Downloadable!] (restricted)
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This page was last updated on 2009-12-5.


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