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Altruism and Career Concerns

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  • Shchetinin, Oleg

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

The paper studies the impact of altruism on Agent’s motivation in the career concerns model. I show that career concerns incentive is lessened by altruism. As a consequence, altruism can decrease effort, though conventional wisdom suggests that effort should always be higher for the more altruistic worker. This means that not only intrinsic motivation can be crowded by extrinsic incentives; crowding effect can go in the opposite direction as well. This emphasizes a new channel of interaction between intrinsic and extrinsic motivation. The paper also studies the effect of altruism on wage. Interestingly, the model provides an example of winner’s blessing and shows that ambitions can hinder altruistic relationship. The model can be naturally applied to the workplace relationship and to the local public good provision.

Suggested Citation

  • Shchetinin, Oleg, 2010. "Altruism and Career Concerns," Working Papers in Economics 427, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0427
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    File URL: http://hdl.handle.net/2077/21818
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    References listed on IDEAS

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    Cited by:

    1. Robert Dur & Jan Tichem, 2015. "Altruism and Relational Incentives in the Workplace," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(3), pages 485-500, September.
    2. Bassi, Matteo & Pagnozzi, Marco & Piccolo, Salvatore, 2014. "Optimal contracting with altruism and reciprocity," Research in Economics, Elsevier, vol. 68(1), pages 27-38.
    3. Stefano Dughera & Alain Marciano, 2022. "Supervise me if you can. Relational feelings, incentive pays and supervisory violations," Journal of Economics, Springer, vol. 136(1), pages 47-72, June.
    4. Robert Dur & Jan Tichem, 2012. "Social Relations and Relational Incentives," Tinbergen Institute Discussion Papers 12-054/1, Tinbergen Institute.

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    More about this item

    Keywords

    Extrinsic and intrinsic motivation; Career concerns; Altruism; Crowding-out;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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