2013 Volume 26 Issue 3 Pages 249-262
In this study, we examine the impacts of monetary and non-monetary rewards on job satisfaction for home care workers in for-profit and nonprofit organizations. We test "the donative-labor hypothesis" (Hansmann, 1980; Preston, 1989; Rose-Ackerman, 1996) which argues that pay for workers in nonprofit organizations are lower than those for workers in for-profit organizations, while satisfaction with non-monetary rewards, along with their impact on job satisfaction, is significantly higher for workers in nonprofit organizations. The results from data analysis based on 390 workers in for-profit organizations and 47 workers in nonprofit organizations showed that those in nonprofit organizations worked for a lower level of pay in exchange for a higher satisfaction with non-monetary rewards and opportunities for training and professional development compared to their counterparts in for-profit organizations. We also found that satisfaction with those rewards and opportunities increased job satisfaction in nonprofit organizations. The implication of the findings and directions for future research are discussed.
