Abstract
The nonprofit sector differs from the for-profit sector both in its more socially-oriented goals and in its different entrepreneurship methods. It may therefore appeal to workers whose job choices are guided by non-monetary considerations. Nonprofit organizations may thus attract more intrinsically motivated workers than for-profit firms. Our empirical analysis uses the French Labor-Force Survey. The results show that nonprofit workers – unlike for-profit workers – deliberately agree to work for lower wages than they could have obtained in the for-profit sector. These results therefore suggest that nonprofit workers report higher levels of intrinsic motivation than their for-profit counterparts.
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