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Intrinsic motivations and the non-profit health sector: Evidence from Ethiopia

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Listed:
  • Danila Serra
  • Pieter Serneels
  • Abigail Barr

Abstract

Economists have traditionally assumed that individual behavior is motivated exclusively by extrinsic incentives. Social psychologists, in contrast, stress that intrinsic motivations are also important. In recent work, economic theorists have started to build psychological factors, like intrinsic motivations, into their models. Besley and Ghatak (2005) propose that individuals are differently motivated in that they have different “missions,” and their self-selection into sectors or organizations with matching missions enhances organizational efficiency. We test Besley and Ghatak’s model using data from a unique cohort study. We generate two proxies for intrinsic motivations: a survey-based measure of the health professionals philanthropic motivations and an experimental measure of their pro-social motivations. We find that both proxies predict health professionals’ decision to work in the non-profit sector. We also find that philanthropic health workers employed in the non-profit sector earn lower wages than their colleagues.

Suggested Citation

  • Danila Serra & Pieter Serneels & Abigail Barr, 2010. "Intrinsic motivations and the non-profit health sector: Evidence from Ethiopia," CSAE Working Paper Series 2010-04, Centre for the Study of African Economies, University of Oxford.
  • Handle: RePEc:csa:wpaper:2010-04
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    References listed on IDEAS

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    1. Gregg, Paul & Grout, Paul A. & Ratcliffe, Anita & Smith, Sarah & Windmeijer, Frank, 2011. "How important is pro-social behaviour in the delivery of public services?," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 758-766, August.
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    5. Glaeser, Edward L. & Shleifer, Andrei, 2001. "Not-for-profit entrepreneurs," Journal of Public Economics, Elsevier, vol. 81(1), pages 99-115, July.
    6. Reinikka, Ritva & Svensson, Jakob, 2004. "Working for God?," CEPR Discussion Papers 4214, C.E.P.R. Discussion Papers.
    7. Timothy Besley & Maitreesh Ghatak, 2005. "Competition and Incentives with Motivated Agents," American Economic Review, American Economic Association, vol. 95(3), pages 616-636, June.
    8. Serneels, Pieter & Lindelow, Magnus & Garcia-Montalvo, Jose & Barr, Abigail, 2005. "For public service or money : understanding geographical imbalances in the health workforce," Policy Research Working Paper Series 3686, The World Bank.
    9. Kenneth L. Leonard & Melkiory C. Masatu & Alexandre Vialou, 2007. "Getting Doctors to Do Their Best: The Roles of Ability and Motivation in Health Care Quality," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
    10. Canice Prendergast, 2007. "The Motivation and Bias of Bureaucrats," American Economic Review, American Economic Association, vol. 97(1), pages 180-196, March.
    11. Fehr, Ernst & Schmidt, Klaus M., 2006. "The Economics of Fairness, Reciprocity and Altruism - Experimental Evidence and New Theories," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
    12. Josse Delfgaauw & Robert Dur, 2008. "Incentives and Workers' Motivation in the Public Sector," Economic Journal, Royal Economic Society, vol. 118(525), pages 171-191, January.
    13. Susan Rose-Ackerman, 1996. "Altruism, Nonprofits, and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 701-728, June.
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    15. repec:hrv:faseco:33078971 is not listed on IDEAS
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    Cited by:

    1. Robert Dur & Robin Zoutenbier, 2011. "Working for a Good Cause," Tinbergen Institute Discussion Papers 11-168/1, Tinbergen Institute, revised 23 Apr 2013.
    2. Matteo M. Galizzi & Daniel Navarro Martinez, 2015. "On the external validity of social-preference games: A systematic lab-field study," Economics Working Papers 1462, Department of Economics and Business, Universitat Pompeu Fabra.
    3. Grant Miller & Kimberly Singer Babiarz, 2013. "Pay-for-Performance Incentives in Low- and Middle-Income Country Health Programs," NBER Working Papers 18932, National Bureau of Economic Research, Inc.
    4. Barr, Abigail & Packard, Truman & Serra, Danila, 2014. "Participatory accountability and collective action: Experimental evidence from Albania," European Economic Review, Elsevier, vol. 68(C), pages 250-269.
    5. Tobias Regner & Hannes Koppel, 2015. "What drives motivated agents? The 'right' mission or sharing it with the principal," Jena Economic Research Papers 2015-022, Friedrich-Schiller-University Jena.
    6. Galizzi, Matteo M. & Navarro-Martínez, Daniel, 2018. "On the external validity of social preference games: a systematic lab-field study," LSE Research Online Documents on Economics 84088, London School of Economics and Political Science, LSE Library.
    7. Barr, Abigail & Packard, Truman & Serra, Danila, 2012. "Participatory accountability and collective action : evidence from field experiments in Albanian schools," Policy Research Working Paper Series 6027, The World Bank.
    8. Hannes Koppel & Tobias Regner, 2011. "Corporate Social Responsibility in the work place - Experimental evidence on CSR from a gift-exchange game," Jena Economic Research Papers 2011-030, Friedrich-Schiller-University Jena.

    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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