Small Business Economics

, Volume 41, Issue 2, pp 379–399

Productivity, wages and intrinsic motivations

  • Leonardo Becchetti
  • Stefano Castriota
  • Ermanno C. Tortia
Article

DOI: 10.1007/s11187-012-9431-2

Cite this article as:
Becchetti, L., Castriota, S. & Tortia, E.C. Small Bus Econ (2013) 41: 379. doi:10.1007/s11187-012-9431-2

Abstract

There is a long-standing debate in labour economics on the impact of workers’ intrinsic motivations on equilibrium wages. One direction in economic theory suggests that intrinsically motivated workers are willing to accept lower wages and “donate” work, for example, in terms of unpaid overtime (the donative-labour hypothesis). In the other direction, intrinsic motivations are expected to increase worker productivity and, in turn, wages (the intrinsic motivation-productivity hypothesis). Using a new database of a sample of workers in the cooperative non-profit sector, we find that, consistently with the motivation-productivity hypothesis, more motivated workers earn significantly higher wages, which signals higher productivity. Evidence supporting the donative-labour hypothesis is weaker, even though a generally positive connection between motivations and work-donation is confirmed. We interpret these findings by arguing that the impact of the donative-labour effect is dominated by the intrinsic motivation-productivity effect.

Keywords

Labor-donationIntrinsic motivationsProductivityWagesWage differentialsNon-profit

JEL Classifications

J30J31I30L26

Copyright information

© Springer Science+Business Media, LLC. 2012

Authors and Affiliations

  • Leonardo Becchetti
    • 1
  • Stefano Castriota
    • 2
  • Ermanno C. Tortia
    • 3
  1. 1.Department of Economics Law and InstitutionsUniversity of Rome II, Tor VergataRomeItaly
  2. 2.Department of EconomicsUniversity of PerugiaPerugiaItaly
  3. 3.Department of EconomicsUniversity of TrentoTrentoItaly