Would you accept this job? An evaluation of the decision utility of workers in the for-profit and nonprofit sectors
AbstractIn 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 16359.
Date of creation: Apr 2009
Date of revision:
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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-28 (All new papers)
- NEP-LAB-2009-07-28 (Labour Economics)
- NEP-UPT-2009-07-28 (Utility Models & Prospect Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roland Benabou & Jean Tirole, 2003.
"Intrinsic and Extrinsic Motivation,"
Review of Economic Studies, Wiley Blackwell,
Wiley Blackwell, vol. 70(3), pages 489-520, 07.
- Roomkin, Myron J & Weisbrod, Burton A, 1999. "Managerial Compensation and Incentives in For-Profit and Nonprofit Hospitals," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 15(3), pages 750-81, October.
- Mathieu Narcy, 2011. "Would nonprofit workers accept to earn less? Evidence from France," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 43(3), pages 313-326.
- Bernard M. S. van Praag & P. Frijters & Ada Ferrer-i-Carbonell, 2001.
"The Anatomy of Subjective Well-Being,"
Discussion Papers of DIW Berlin
265, DIW Berlin, German Institute for Economic Research.
- van Praag, B. M. S. & Frijters, P. & Ferrer-i-Carbonell, A., 2003. "The anatomy of subjective well-being," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 51(1), pages 29-49, May.
- Christopher Ruhm & Carey Borkoski, 2000.
"Compensation in the Nonprofit Sector,"
NBER Working Papers
7562, National Bureau of Economic Research, Inc.
- Matthias Benz, 2005. "Not for the Profit, but for the Satisfaction? - Evidence on Worker Well-Being in Non-Profit Firms," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 58(2), pages 155-176, 04.
- Michele Mosca & Marco Musella & Francesco Pastore, 2007.
"Relational Goods, Monitoring And Non-Pecuniary Compensations In The Nonprofit Sector: The Case Of The Italian Social Services,"
Annals of Public and Cooperative Economics,
Wiley Blackwell, vol. 78(1), pages 57-86, 03.
- Mosca, Michele & Musella, Marco & Pastore, Francesco, 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).
- Daniel Kahneman & Alan B. Krueger, 2006. "Developments in the Measurement of Subjective Well-Being," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 20(1), pages 3-24, Winter.
- Timothy Besley & Maitreesh Ghatak, 2005.
"Competition and Incentives with Motivated Agents,"
American Economic Review, American Economic Association,
American Economic Association, vol. 95(3), pages 616-636, June.
- Besley, Timothy J. & Ghatak, Maitreesh, 2004. "Competition and Incentives with Motivated Agents," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4641, C.E.P.R. Discussion Papers.
- Tim Besley & Maitreesh Ghatak, 2005. "Competition and incentives with motivated agents," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 928, London School of Economics and Political Science, LSE Library.
- Timothy Besley & Maitreesh Ghatak, 2003. "Competition and incentives with motivated agents," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 2202, London School of Economics and Political Science, LSE Library.
- Andrew E. Clark, 2009.
"Work, jobs and well-being across the Millennium,"
PSE Working Papers
- Clark, Andrew E., 2009. "Work, Jobs and Well-Being across the Millennium," IZA Discussion Papers 3940, Institute for the Study of Labor (IZA).
- Andrew E. Clark, 2009. "Work, Jobs and Well-Being across the Millennium," OECD Social, Employment and Migration Working Papers 83, OECD Publishing.
- Clark, Andrew E., 2009. "Work, Jobs And Well-Being Across the Millennium," CEPREMAP Working Papers (Docweb), CEPREMAP 0901, CEPREMAP.
- Scott, Anthony, 2001. "Eliciting GPs' preferences for pecuniary and non-pecuniary job characteristics," Journal of Health Economics, Elsevier, Elsevier, vol. 20(3), pages 329-347, May.
- Scott Stern, 2004. "Do Scientists Pay to Be Scientists?," Management Science, INFORMS, INFORMS, vol. 50(6), pages 835-853, June.
- 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, London School of Economics, vol. 43(3), pages 431-454, 09.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2002.
"How important is Methodology for the Estimates of the Determinants of Happiness?,"
Tinbergen Institute Discussion Papers
02-024/3, Tinbergen Institute.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 114(497), pages 641-659, 07.
- Andrew Clark, .
"Job Satisfaction and Gender. Why are Women so Happy at Work?,"
Economics Discussion Papers, University of Essex, Department of Economics
415, University of Essex, Department of Economics.
- Clark, Andrew E., 1997. "Job satisfaction and gender: Why are women so happy at work?," Labour Economics, Elsevier, Elsevier, vol. 4(4), pages 341-372, December.
- Clark, A.E., 1995. "Job Satisfaction and Gender: Why Are Women so Happy at Work?," DELTA Working Papers, DELTA (Ecole normale supÃ©rieure) 95-10, DELTA (Ecole normale supérieure).
- repec:dgr:uvatin:2002022 is not listed on IDEAS
- Sousa-Poza, Alfonso & Sousa-Poza, Andres A, 2000. "Taking Another Look at the Gender/Job-Satisfaction Paradox," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 53(2), pages 135-52.
- 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, Elsevier, vol. 41(2), pages 295-317, February.
- Green, Paul E, 1974. " On the Design of Choice Experiments Involving Multifactor Alternatives," Journal of Consumer Research, University of Chicago Press, University of Chicago Press, vol. 1(2), pages 61-68, Se.
- Preston, Anne E, 1989. "The Nonprofit Worker in a For-Profit World," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 7(4), pages 438-63, October.
- Kreps, David M, 1997. "Intrinsic Motivation and Extrinsic Incentives," American Economic Review, American Economic Association, American Economic Association, vol. 87(2), pages 359-64, May.
- Origo, Federica & Pagani, Laura, 2009. "Flexicurity and job satisfaction in Europe: The importance of perceived and actual job stability for well-being at work," Labour Economics, Elsevier, Elsevier, vol. 16(5), pages 547-555, October.
- Kahneman, Daniel & Wakker, Peter P & Sarin, Rakesh, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(2), pages 375-405, May.
- Jed Devaro & Dana Brookshire, 2007. "Promotions and Incentives in Nonprofit and For-Profit Organizations," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 60(3), pages 311-339, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.