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Training and intrinsic motivation in nonprofit and for-profit organizations

Jed DeVaro, Nan Maxwell and Hodaka Morita

Journal of Economic Behavior & Organization, 2017, vol. 139, issue C, 196-213

Abstract: We develop a theoretical model in which for-profit and nonprofit employers compete to hire a worker who derives intrinsic motivation from the nonprofit's social mission. Using a unique data set of California establishments, we document a new empirical result that training has a higher incidence in nonprofits than in for-profits. In nonprofits, we also find evidence of lower base wages (with the wage gap increasing in skill level) and less incentive pay. We use the model to interpret the new result concerning training and the results (both here and from the prior literature) on base wages and incentive pay.

Keywords: Nonprofits; Training; Incentive pay; Intrinsic motivation; Compensating differentials; Fringe benefits (search for similar items in EconPapers)
JEL-codes: J33 L30 L29 (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:eee:jeborg:v:139:y:2017:i:c:p:196-213