Working in the Profit Versus Not-For-Profit Sector: What Difference Does it Make? An Inquiry on Preferences of Voluntary and Involuntary Movers

21 Pages Posted: 9 Jun 2010

See all articles by Leonardo Becchetti

Leonardo Becchetti

University of Rome Tor Vergata - Faculty of Economics

Stefano Castriota

University of Perugia

Sara Depedri

European Research Institute on Cooperative & Social Enterprises (EURICSE); University of Trento

Date Written: March 1, 2010

Abstract

We investigate what is behind the profit/not–for-profit wage differential by comparing judgments on job characteristics of workers who voluntarily or involuntarily moved from the former to the latter. We define voluntary movers as those who applied for a job in a not-for-profit organization and, when successful, resigned from their for profit position, while involuntary movers can either have been laid off by the company or have resigned without already having a job offer in the not-for-profit sector when leaving the firm. We observe that almost half of voluntary movers end up without higher wages, but with higher job satisfaction after the change. A vast majority of them exhibit significantly higher time flexibility, improved relationships with stakeholders, closer consistency with educational skills and higher satisfaction of intrinsic motivations in the new job. Our findings support the profit/no profit compensating differential hypothesis and shed light on mechanisms which are beyond the donative behaviour of intrinsically motivated workers.

Keywords: Social enterprises, wage differentials, intrinsic motivations, changing job, dissatisfaction

JEL Classification: J3, I3

Suggested Citation

Becchetti, Leonardo and Castriota, Stefano and Depedri, Sara, Working in the Profit Versus Not-For-Profit Sector: What Difference Does it Make? An Inquiry on Preferences of Voluntary and Involuntary Movers (March 1, 2010). Euricse Working Papers No. 005/10. Available at SSRN: https://ssrn.com/abstract=1622206 or http://dx.doi.org/10.2139/ssrn.1622206

Leonardo Becchetti

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia, 2
I-00133 Rome
Italy

Stefano Castriota

University of Perugia ( email )

Via Pascoli 22
Perigoa, 06121
Italy

Sara Depedri (Contact Author)

European Research Institute on Cooperative & Social Enterprises (EURICSE) ( email )

Via S. Giovanni 36
38122 Trento (TN)
Italy

University of Trento

Via Giuseppe Verdi 26
Trento, Trento 38152
Italy

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