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Altruism and Career Concerns

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.
URI
http://hdl.handle.net/2077/21818
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  • Working papers
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gupea_2077_21818_1.pdf (376.0Kb)
Date
2010-01-22
Author
Shchetinin, Oleg
Keywords
Extrinsic and intrinsic motivation
Career concerns
Altruism
Crowding-out
Publication type
report
ISSN
1403-2465
Series/Report no.
Working Papers in Economics
427
Language
eng
Metadata
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