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Not for the Profit, but for the Satisfaction? – Evidence on Worker Well‐Being in Non‐Profit Firms

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  • Matthias Benz

Abstract

Non‐profit firms are often seen as workplaces where people not only work for money, but also find substantial satisfaction in the kind of work they do. Studies looking at compensating wage differentials, however, have only found limited support for this notion. In this paper, a novel approach is undertaken to compare the utilities of non‐profit and for‐profit employees, by using measures of job satisfaction. The results show that in both the United States and Great Britain over the 1990's, non‐profit workers were generally more satisfied with their jobs than for‐profit workers. The robustness of the results is explored in detail, and implications for the governance of non‐profit firms are shortly discussed.

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  • Matthias Benz, 2005. "Not for the Profit, but for the Satisfaction? – Evidence on Worker Well‐Being in Non‐Profit Firms," Kyklos, Wiley Blackwell, vol. 58(2), pages 155-176, May.
    • Handle: RePEc:bla:kyklos:v:58:y:2005:i:2:p:155-176
    DOI: 10.1111/j.0023-5962.2005.00283.x
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    References listed on IDEAS

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    1. Bruno S. Frey, 1997. "Not Just for the Money," Books, Edward Elgar Publishing, number 1183.
    2. Richard Arnould & Marianne Bertrand & Kevin F. Hallock, 2000. "Does Managed Care Change the Mission of Nonprofit Hospitals? Evidence From the Managerial Labor Market," NBER Working Papers 7924, National Bureau of Economic Research, Inc.
    3. Matthias Benz & Bruno S. Frey, "undated". "The Value of Autonomy: Evidence from the Self-Employed in 23 Countries," IEW - Working Papers 173, Institute for Empirical Research in Economics - University of Zurich.
    4. Edward L. Glaeser, 2003. "The Governance of Not-for-Profit Organizations," NBER Books, National Bureau of Economic Research, Inc, number glae03-1.
    5. Edward L. Glaeser, 2003. "Introduction to "The Governance of Not-for-Profit Organizations"," NBER Chapters, in: The Governance of Not-for-Profit Organizations, pages 1-44, National Bureau of Economic Research, Inc.
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