Productivity, wages and intrinsic motivations
There is a long-standing debate in labour economics on the impact of workers’ intrinsic motivations on equilibrium wages. One direction in economic theory suggests that intrinsically motivated workers are willing to accept lower wages and “donate” work, for example, in terms of unpaid overtime (the donative-labour hypothesis). In the other direction, intrinsic motivations are expected to increase worker productivity and, in turn, wages (the intrinsic motivation-productivity hypothesis). Using a new database of a sample of workers in the cooperative non-profit sector, we find that, consistently with the motivation-productivity hypothesis, more motivated workers earn significantly higher wages, which signals higher productivity. Evidence supporting the donative-labour hypothesis is weaker, even though a generally positive connection between motivations and work-donation is confirmed. We interpret these findings by arguing that the impact of the donative-labour effect is dominated by the intrinsic motivation-productivity effect. Copyright Springer Science+Business Media, LLC. 2013
References listed on IDEAS
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.:
- Matthias Benz, 2005. "Not for the Profit, but for the Satisfaction? - Evidence on Worker Well-Being in Non-Profit Firms," Kyklos, 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).
- Susan Rose-Ackerman, 1996. "Altruism, Nonprofits, and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 701-728, June.
- 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.
- Sara Depedri & Ermanno Tortia & Maurizio Carpita, 2010. "Incentives, job satisfaction and performance: empirical evidence in italian social enterprises," Euricse Working Papers 1012, Euricse (European Research Institute on Cooperative and Social Enterprises).
- Freeman, Richard B, 1997.
"Working for Nothing: The Supply of Volunteer Labor,"
Journal of Labor Economics,
University of Chicago Press, vol. 15(1), pages S140-66, January.
- Richard B. Freeman, 1996. "Working for Nothing: The Supply of Volunteer Labor," NBER Working Papers 5435, National Bureau of Economic Research, Inc.
- Freeman, Richard Barry, 1997. "Working for Nothing: The Supply of Volunteer Labor," Scholarly Articles 4632239, Harvard University Department of Economics.
- George A. Akerlof & Rachel E. Kranton, 2005. "Identity and the Economics of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 9-32, Winter.
- Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
- Mathieu Narcy, 2011. "Would nonprofit workers accept to earn less? Evidence from France," Applied Economics, Taylor & Francis Journals, vol. 43(3), pages 313-326.
- Weisbrod, Burton A, 1983. "Nonprofit and Proprietary Sector Behavior: Wage Differentials among Lawyers," Journal of Labor Economics, University of Chicago Press, vol. 1(3), pages 246-63, July.
- Gary Akehurst & José Comeche & Miguel-Angel Galindo, 2009. "Job satisfaction and commitment in the entrepreneurial SME," Small Business Economics, Springer, vol. 32(3), pages 277-289, March.
- 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.
- Preston, Anne E, 1988. "The Effects of Property Rights on Labor Costs of Nonprofit Firms: An Application to the Day Care Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 36(3), pages 337-50, March.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, October.
- Paolo Naticchioni & Andrea Ricci & Emiliano Rustichelli, 2010. "Far away from a skill-biased change: falling educational wage premia in Italy," Applied Economics, Taylor & Francis Journals, vol. 42(26), pages 3383-3400.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
- Rafael Rob & Peter Zemsky, .
"Social Capital, Corporate Culture and Incentive Intensity,"
Penn CARESS Working Papers
7380c2f90d0b2f362ad71f139, Penn Economics Department.
- Rafael Rob & Peter Zemsky, 2002. "Social Capital, Corporate Culture, and Incentive Intensity," RAND Journal of Economics, The RAND Corporation, vol. 33(2), pages 243-257, Summer.
When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:41:y:2013:i:2:p:379-399. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.