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Productivity, wages and intrinsic motivation in social enterprises

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  • Becchetti, Leonardo

    ()
    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Castriota, Stefano

    ()
    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Tortia, Ermanno

    ()
    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

Abstract

In our empirical analysis of wage differentials in a sample of workers in the cooperative not for profit sector we find that, consistently with the donative-labor hypothesis, more intrinsically motivated workers “donate more work” (unpaid overtime, arrear holidays) but are also more productive and earn significantly higher wages. Our results are robust to several measures of workers’ remuneration and controlled for endogeneity. We interpret these findings by arguing that the hypothesis of the static negative correlation between intrinsic motivations and wages (where intrinsic motivations work as a compensating differential) is dominated by the effect by which intrinsic motivations cause or are a signal of higher productivity.

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File URL: http://www.aiccon.it/file/convdoc/wp_aiccon_intrinsicmotivation.pdf
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Bibliographic Info

Paper provided by Associazione Italiana per la Cultura della Cooperazione e del Non Profit in its series AICCON Working Papers with number 66-2009.

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Length: 34 pages
Date of creation: 07 Dec 2009
Date of revision:
Handle: RePEc:ris:aiccon:2009_066

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Keywords: Productivity; wages; intrinsic motivation; social enterprises;

References

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  1. Leete, Laura, 2001. "Whither the Nonprofit Wage Differential? Estimates from the 1990 Census," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 136-70, January.
  2. George J. Borjas & H. E. Frech III & Paul B. Ginsburg, 1983. "Property Rights and Wages: The Case of Nursing Homes," Journal of Human Resources, University of Wisconsin Press, vol. 18(2), pages 231-246.
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Citations

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Cited by:
  1. Bruna Bruno & Damiano Fiorillo, 2014. "Voluntary work and wages," EERI Research Paper Series EERI RP 2014/05, Economics and Econometrics Research Institute (EERI), Brussels.
  2. Silvia Sacchetti & Ermanno C. Tortia, 2010. "A NEW FRAMEWORK FOR THE ECONOMIC ANALYSIS OF COOPERATIVE FIRMS: Self-defined rules, common resources, motivations, and incentives," Econometica Working Papers wp21, Econometica.
  3. Fabio Sabatini & Francesca Modena & Ermanno Tortia, 2012. "Do cooperative enterprises create social trust?," EERI Research Paper Series EERI_RP_2012_10, Economics and Econometrics Research Institute (EERI), Brussels.
  4. Sacchetti, Silvia & Tortia, Ermanno, 2012. "The internal and external governance of cooperatives: the effective membership and consistency of value," AICCON Working Papers 111-2012, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
  5. Vera Negri Zamagni, 2011. "The Co-operative Enterprise: A Remaining of the Past or a Proposal for a Better Society?," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, June.
  6. F. Barigozzi & D. Raggi, 2013. "The Lemons Problem in a Labor Market with Intrinsic Motivation. When Higher Salaries Pay Worse Workers," Working Papers wp883, Dipartimento Scienze Economiche, Universita' di Bologna.
  7. Vera Negri Zamagni, 2012. "Interpreting the Roles and Economic Importance of Cooperative Enterprises in a Historical Perspective," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 1(1), pages 21-36, December.

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