Intrinsic Motivations And The Non-profit Health Sector: Evidence From Ethiopia

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Economists have traditionally assumed that individual behavior is motivated exclusively by extrinsic incentives. Social psychologists, in contrast, stress that intrinsic motivations are also important. In recent work, economic theorists have started to build psychological factors, like intrinsic motivations, into their models. Besley and Ghatak (2005) propose that individuals are differently motivated in that they have different "Missions," and their self-selection into sectors or organizations with matching missions enhances organizational efficiency. The authors test Besley and Ghatak's model using data from a unique cohort study.