Does organizational ownership matter? Objectives of employees in public, nonprofit and for-profit nursing homes

Stijn Van Puyvelde, Ralf Caers, Cind Du Bois and Marc Jegers

Applied Economics, 2015, vol. 47, issue 24, 2500-2513

Abstract: Does organizational ownership matter for employees? We conducted a discrete choice experiment to reveal employees' objectives in for-profit, nonprofit and governmental nursing homes. The results indicate that differences in objectives among nursing home staff are at least partially related to differences in ownership type. More specifically, we find that employees of public nursing homes are less extrinsically motivated than their for-profit and nonprofit counterparts. However, the results also show that employees of for-profit, nonprofit and governmental nursing homes are trading off output quality and output quantity differently, in line with the view that public providers of elderly care are pursuing a supplier-of-last-resort objective function.

Date: 2015
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DOI: 10.1080/00036846.2015.1008767

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