Working for Non-Profit:

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Bachelor Thesis Economics and Business Economics specialisation Organisational Economics

Working for Non-Profit:

Donative Labour Hypothesis and the Influence of Big Five Personality Traits

Date Student number

June 29, 2022 11428465

Authorised by Email

Zeya Wei zeya.wei.9722@gmail.com

Supervised by Website

Yang Zhong linkedin@zeya-wei-hr

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Statement of Originality

This document is written by Zeya Wei who declares to take full responsibility for the contents of this document. I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it. The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.

Acknowledgement

This Bachelor thesis is written as part of the finalization of the Bachelor Economics and Business Economics: Organizational Economics at the University of Amsterdam.

Writing this thesis would not have been possible without the help of a number of people.

First and foremost, I would like to express my gratitude to my thesis supervisor Dr. Yang Zhong for his great help, valuable feedback, interesting discussions and encouragement when I am in difficulties during the thesis process.

Additionally, I would like to thank the readers in advance for taking the time and

effort to read this thesis. I hope you will enjoy it. Lastly, I wish to express my gratitude to my parents for the commitment in years and my girlfriend who I grew together with during our time at UvA. Your love has motivated me whenever a challenge arises.

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Abstract

Non-profit organizations have been facing the difficulty of attracting and retaining talents has been a struggle for long time because of its low wage and reliance on intrinsic

motivation. To address this challenge, this study conducted a quantitative investigation on the correlation between personality traits, wage and the motivation into non-profit

organizations via logistic regression analysis based on a sample of 4,919 from the database US-American National Longitudinal Study of Youth 1979. This research sought to answer the following questions: Firstly, compared to those in the for-profit private companies, do employees in non-profit sector possess any significant traits in five-factor personality model? Secondly, does the wage play a role in the probability to enter and stay in the non- profit sectors? Through the analysis, strong evidence was found that workers in non-profit organization are willing to donate part of their labor for lower wages and derive more utility from social benefits. In terms of personality traits, higher level of extraversion and emotion stability is proved to be related higher intrinsic motivation to work in non-profit

organization and fostered higher job satisfaction. This research was the first to investigate how personality traits influence the motivation into non-profit organization and shed light on the directions for future studies in this field regarding personality and intersectionality.

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Table of Content

Statement of Originality ... 2

Abstract ... 3

Table of Content... 4

Acknowledgement ... 2

1. Introduction ... 5

2. Literature Review ... 7

2.1 Career Choice and Personality... 7

2.2 the Role of Monetary Compensation ... 9

2.3 Motivation into Non-Profit Organization ... 10

3. Research Design... 11

3.1 Conceptual Model ... 11

3.1 Data Source ... 13

3.2 Variables ... 14

4. Model and Analysis ... 15

4.1 Data Preparation ... 15

4.2 Analysis and Results ... 16

5. Conclusion, Discussion and Future Directions ... 20

6. Limitations ... 21

Reference ... 23

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1. Introduction

Non-profit organizations have increased substantial in number over the past 20 years and account for a considerable amount of employment in the economy (Benz, 2015; Dolnicar et al. 2008). In the U.S., according to the National Center for Charitable Statistics, the number of registered non-profit organizations was approximately 1.54 million in 2019. In England and Whales, the number of registered charities in 2018 was 168,186 (Charity Commission, 2018).

Non-profit organizations operate in a wide range of areas including education, research, arts, health care, high tech and other social services. Despite its growth, non-profit sector still faces some long-lasting obstacles.

The difficulty of attracting and retaining talents has been a struggle in the non-profit sector for long (Dolnicar et al. 2008). This challenge sustained because of two reasons.

Firstly, as non-profit organizations usually pursue a social cause, its employees will need to be motivated to promote the non-profit’s mission or to assist in the production of a public good that they believe can contribute to the society (Macy, 2006; Benz, 2015). Secondly, the non-profit sector's payroll represents only a small percent of total payroll yet it competes with for-profit organization in the same labor market (Benz 2005). Non-profit workers are often overworked and underpaid (Smith et al., 2006; Mahon, 2016). Therefore, the employment of professionals in non-profit organizations rely heavily on the intention to do good instead of financial incentive (Valentinov, 2007). As a result, in order to improve the talents recruitment and retention, it is imperative for non-profit organizations to understand the characteristics of the right professionals that possess these motivations and are willing to stay for the long term.

The current literature shed light on the motivation of non-profit workers. Bassous (2015) reveals that the motivation to achieve organizational objectives links directly to the mission, vision, and impact of the faith-based organization's programs and has no significant

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motivated by more than just monetary incentive and have a higher job satisfaction than those in the for-profit sectors. Non-profit workers are also found to be motivated by

transformational leadership with support and delegation (Bassous, 2015). However, few studies have looked into the antecedents of these motivations and the characteristics of these people who have these motivations. The relation between personality traits and non-profit works, in particular, remains blank in the existing literature. Moreover, while most research posits that monetary incentives do not serve as a main motivator for non-profit workers, it is still important to understand what role it plays in talent retention of non-profit organizations because it could be a main barrier for talents who have financial strains to sustain their career in non-profit sector. It is also unrealistic for non-profit organizations to tackle labor shortage merely by requiring all its employees to depend solely on intrinsic motivation.

In sum, two major gaps can be observed in the extant research. Firstly, it lacks insight into the characteristics of potential talents of non-profit organization, especially in personality traits. Secondly, it ignores the possible influence of financial incentive in the decision to go into and stay in the non-profit sectors and take for granted that non-profit workers are intrinsically motivated, limiting the scope for non-profit organization to resolve its labor shortage.

Therefore, bearing these gaps and challenges in mind, this study aims to investigate how personality traits and wage predict the talents’ motivation of going into non-profit

organizations. The following research questions will be answered to complement the existing research:

RQ1 Compared to those in the for-profit private companies, do employees in non-profit sector possess any significant traits in five-factor personality model?

RQ2 Does the wage play a role in the probability to enter and stay in the non-profit sectors?

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By answering these questions, this research contributes to both the topical literature gap and talent management in non-profit organization. Firstly, by examining the role and

influence of personality and wage in the probability to work in non-profit organization, this research unveils the personality-related factors that contribute to the decision to work in non- profit organization and how wage as a monetary incentive that is unconventional in non-profit sector plays a role. Secondly, it provides insight for the talent recruitment and retention for non-profit organization. Since personality test is prevalent among companies’ recruiting process and there are plenty of online test vendors in the market, should non-profit

organizations know what type of personality has higher motivation, they can easily act on these insights.

The rest of this research will be outlined as follows. Firstly, extant literature will be reviewed by themes associated with career choice and personality, motivation into non-profit organization and the role of monetary compensation. Thereafter, the relation between

personality traits and decision into non-profit sectors will be hypothesized. Then the

methodology will be introduced. The analysis and results will be described. Next, a discussion of the findings is presented. Finally, the limitations of this study and directions for future research will be outlined and the research will be concluded by the implications for its study and management going forward.

2. Literature Review

2.1 Career Choice and Personality

The research into career choice can be dated back to 1980s. Gottfredson (1981) defined career choice as individuals moving from uncertainty about their career options toward a point of commitment in the process of career development. Later on, Blustein, Ellis, and Devenis

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(1989) defined the construct of commitment to career choice that when an individual has a clear sense of his or her occupational preferences along with a firm attachment to a specific set of career goals (e.g., developing a goal of going to law school and becoming a practicing attorney), she or he commit to career choice. After that, there has been a few studies to investigate the antecedents and predictors for career choice but few evidence was found (Wang, Jome, Haase & Bruch, 2006).

While researchers have been trying to explore the relations between personality and career choice, it was not until more recently, the empirical validation of a theoretical model of

personality, the five-factor model (FFM), currently known as the “Big Five” started to provide guidance for how personality predicts certain aspects of career development (Goldberg, 1990, 1992; McCrae & Costa, 1996, 1999). The Big-Five model has personality traits with five broad factors and represents personality at the broadest level of abstraction. It includes extraversion vs. introversion, agreeableness vs. antagonism, conscientiousness vs. lack of direction, neuroticism vs. emotion stability and openness vs. closedness to experience (John &

Srivastava, 1999). Each bipolar factor summarizes several more specific facets. For example, extraversion summarized sociable, energetic, enthusiastic and outgoing (McCrae & Costa, 1996).

The Big-Five framework suggests that most individual differences in human personality can be classified into five broad, empirically derived domains (Gosling, Rentfrow and Swann, 2013). As a result, researchers in this field tend to have lengthy instrument to test the five factors. Unfortunately, in reality, personality researchers often have limited time and

resources to exploit these extensive instruments (Gosling et al., 2013). For example, Robins, Trzesniewski, Tracy, Gosling and Potter (2002) had to use a single-item measure to conduct an Internet-based study and obtain ratings of self-esteem because participants were unlikely to

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dwell at the website long enough to complete a multi-item questionnaire. Short instrument is needed for personality survey.

2.2 the Role of Monetary Compensation

The nonprofit sector's payroll also represents a lower percentage of total payroll (Benz, 2005). Non-profit organization has been facing labor shortage and the nonprofit worker is categorized as overworked and underpaid (Mize Smith et al., 2006). It is also widely believed in the academia that because of the nonfinancial facet of non-profit organization, people seeking to work in the sector are motivated by nonmonetary and humane goals (Brandl and Güttel 2007). Researchers offer donative-labor hypothesis (Benz, 2005) or labor donations (Preston, 1989; Valentinov, 2007) to explain this phenomenon from an economic perspective: Non-profit workers are willing to donate part of their labor and accept lower wages. They are willing to provide their labor for an un-equivalent pay and invest more energy and time to help achieve the organization’s mission (Bassous, 2014).

Preston (1989) also hypothesized that non-profit workers place a positive utility on contributing to social welfare and are willing to trade off wages for positive social

externalities. The underlying intrinsic motives relate to the self-leadership theory in which individuals believe their work goes beyond the structured reward system and involves higher standards of self-influence, self-regulation and self-control (Manz, 1986).

However, monetary compensation is inevitably a practical factor for many to choose their career because wage and benefits are a key part of the physiological and safety needs in the Maslow’s needs theory (Halepota, 2005). Monetary compensation of non-profit

organizations could shield many people who are willing to devote their cause but have with financial concerns from entering. From an economic perspective, a worker chooses between

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job opportunities based on utility comparison (Preston, 1989). Thus, it is important to take into account of monetary compensation as part of the utility that drive the decision into non- profit organization.

2.3 Motivation into Non-Profit Organization

This section intends to build the link between personality traits and the decision into non- profit organizations and explore what personality traits constitutes the perspective that social benefits can be part of the utility comparison of job decision. Since little literature is related to the personality and the decision into non-profit organization, understanding the motivation of non-profit workers is necessary to establish the theoretical link. Due to the lack of literature, this section will also review some studies in charitable behaviors as their motivation shares some similarity with that of working in non-profit organization. As the majority of nonprofit organizations pursue a social cause, people choose to work for them to accomplish deep- rooted meaningful values that relate with the organization's activities (Macy, 2006).

Bassous (2014) summarized the work-related motivation theories in the past few years and provided implications for faith-based non-profit organization. Firstly, the five levels of needs in Maslow’s needs theory, physiological, safety, social and esteem, reflects different aspects of work-related motivation (Maslow, 1958). Regarding non-profit organizations, workers in non-profit sectors are more likely to be motivated by the higher level of needs instead of basic needs, such as social needs that relate to teamwork and relationship, esteem needs that relate to the autonomy and self-actualization that relates to creative and challenging tasks (Halepota, 2005). Secondly, Herzberg’s two-factor model of motivation-hygiene also shed light on the motivation into non-profit organizations (Herzberg, 1974). Since many non-profit

organizations are unable to offer competitive salary package, workers inside tend to be

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motivated by job enrichment and satisfaction factors which related to achievement, autonomy and responsibility (Bassous, 2014). Benz (2005) also found that job satisfaction is a important motivation for non-profit workers. The job contents in non-profit organization also reflect these connections as they often involve stakeholder management, people communication, intrinsic motivation to pursue the missions. Thus, linking it to the big five framework, workers who are motivated by social needs are more likely to be extravert. Those who are motivated by esteem needs are more likely to be more conscientious. Those who are

motivated by self-actualization needs are more likely to be more opened to new experience.

The personality traits of those who gives to charity are also worthy to consider here as they have a shared root, altruism. Non-profit workers place the needs of others above their own and stem rewards from the commitment to the service (Smith et al., 2006). These motives are altruistic because the actions and behavior have consequences on people (Sorauren, 2000).

Donation behaviors too have similar motives and are oriented towards helping people and committing to a social cause. Lee and Chang (2007) found that empathy is one of the key predictors that drive charitable behaviors. Bennett (2003) also pointed out that empathy was one of intrinsic variables of charitable giving. Empathy is a major attribute to the personality trait, agreeableness (Graziano et al., 2007). Thus, non-profit workers are likely to have higher level of agreeableness.

3. Research Design 3.1 Conceptual Model

In light of the gap and contribution from the previous literature, this study will develop a conceptual model to explore how personality relate to the motivation of working in non- profit organization and how such motivation is balanced with wage consideration in the

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utility comparison for job decision, namely, the relation between personality of the big five model and wage, and the motivation to go into non-profit organization. Thus, the

conceptual model will include three main constructs. Personality is the predictor for intrinsic motivation into non-profit organizations which can result in working in them and includes five variables, extraversion, agreeableness, conscientiousness, emotion stability and openness to new experience. Wage will be the monetary compensation received for working in the organization. The probability to work in a non-profit organization is the proxy of the utility comparison for the job decision and is determined by whether the employee was in a non-profit organization.

The following hypotheses are developed based on the literature review. Since no literature was found regarding the relations between emotion stability and the probability to work in non-profit organization, two hypotheses are created here.

H1. The personality trait, extraversion, in the big five model is positively correlated to the

probability to work in non-profit organizations.

H2. The personality trait, agreeableness, in the big five model is positively correlated to the

probability to work in non-profit organizations.

H3. The personality trait, conscientiousness, in the big five model is positively correlated to

the probability to work in non-profit organizations.

H4a. The personality trait, emotion stability, in the big five model is positively correlated to

the probability to work in non-profit organizations.

H4b. The personality trait, emotion stability, in the big five model is negatively correlated to the probability to work in non-profit organizations.

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H5. The personality trait, openness to new experience, in the big five model is positively

correlated to the probability to work in non-profit organizations.

H6. The amount of wage of employees is negatively correlated to the probability to work in non-profit organizations.

Fig. 1. Conceptual Model

3.1 Data Source

This study uses the database US-American National Longitudinal Study of Youth 1979 (NLSY79). The NLSY79 is a nationally representative sample of 12,686 young men and women born during the years 1957 through 1964 and living in the United States when the survey began. The survey respondents were ages 14 to 22 when first interviewed in 1979.

The NLSY79 can be considered as one of the most renowned and widely used socio-

economic surveys because it contains carefully collected and comprehensive information on representative samples of individuals (Benz, 2005).

The main benefits of using this database are as follows. Firstly, NLSY79 is one of the few surveys undertaken in western countries that comprises a separate category for non-

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profit workers (Benz, 2005). Secondly, NLSY79 extensively surveys a wide range of aspects including income, working hours, education and demographic characteristics and provides sufficient control variables to eliminate alternative explanations. Thirdly, NLSY79 has a panel structure that is helpful for empirical analysis. The use of this database is always in line with the previous research on non-profit organizations (Benz, 2005).

3.2 Variables

The dependent variable in this study is the probability of working in non-profit

organization, a binary variable. This study takes into account only people who work in for- profit private organizations and non-profit organizations. Thus, in this model, one is either work in non-profit or for-profit organizations.

The two independent variables in the model are the five personality traits and wages as they are hypothesized as the main predictor for the decision into non-profit organization.

The measurement of personality in NLSY79 is based on Ten-Item Personality Inventory of Gosling et al. (2013), a short measure of 10 items that reached adequate levels in terms of convergence, test–retest reliability and patterns of predicted external correlates for more practical situations. Compared to the comprehensive measures, such as Costa and McCrae’s (1992) NEO Personality Inventory, revised (NEO-PI-R), which contains 240 items and Goldberg’s instrument consisting of 100 trait descriptive adjectives (Goldberg, 1992), the TIPI of (Gosling et al., 2013) is concise and easy to grasp. Considering that the concepts in big five such as extraversion is well known among the public, a short instrument is more suitable for surveying a large sample. The measurement of wage in NLSY79 is the log of hourly wage of the current job of the workers. This is in line with Ben’s (2005) research on employee satisfaction in non-profit organizations.

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Consistent of the previous research in the field, this model incorporates a variety of control variables to eliminate their influence on the outcomes, including, hours worked per week, job satisfaction, race, gender, education level. In the study of Bassous (2014) and Benz (2005), gender is significantly associated with the motivation into non-profit organization. Benz (2005) also found that working hours per week is significantly correlated with the satisfaction of working in non-profit organizations.

Year is treated as dummy variable as this study takes into account of the data in 2014 and 2016. This dummy shows us whether or not there is a significant difference in the year of the survey.

4. Model and Analysis 4.1 Data Preparation

All data is prepared and analyzed in Stata/MP17. To begin with, the data needs to be cleaned and ensured reliability. Firstly, the data set downloaded from NLSY79 was transformed into analyzable forms via Stata/MP17. Secondly, the sample was checked for missing and extreme values. Missing values were excluded listwise. Frequency checks and outlier checks were performed to examine errors. Thirdly, the personality variables given by NLSY79 dataset in the form of Ten-Item Personality Inventory (TIPI) was transformed into Big Five Personality (BFP). Gosling et al. (2013) personally confirmed the ten items in TIPI matrix to have either positive or negative correlations to the five traits in BFP, accumulating ten items into five pairs. The initial data in NLSY79 is coded with five counter-indicative items in TIPI reversely to the positive direction and taken average for each pair. Binary variables were also recoded, such as from working in for-profit

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organizations and working in non-profit organizations to 0 and 1, from 1 (man) and 2 (woman) to 0 (man) and 1 (woman).

4.2 Analysis and Results

Firstly, before the empirical test, statistical descriptions are created to depict the properties of obtained data and give an overview of the sample. In the year 2014 overall, 49% of the sample were female. 15.6% of the sample work in non-profit organization. In terms of personality, the sample is skewed towards extraversion, agreeableness, conscientiousness, emotional stability and openness to new experience. Their average job satisfaction is 1.7 out of 4 and they work for 41.2 hours per work on average. The average education level of the sample was 1st year college. In terms of race, hispanic and black accounts for 45%. The rest of the sample is white.

Table 1. Summary Statistics.

Independent Variable Mean Std. Dev. Min Max N

Labor Market Outcomes

Hourly Wages

2,473 1,624 387 10,653 4,942 Job Satisfaction 1.69 0.73 1 4 4,931 Hours Worked per

Week 41.16 11.27 0 100 4,942

Personality Traits

Extraversion 4.45 1.44 1 7 4,940 Agreeableness 5.21 1.23 1 7 4,933 Conscientiousness 5.84 1.21 1 7 4,942 Emotional Stability 5.22 1.28 1 7 4,941 Openness to New

Experience 4.98 1.26 1 7 4,938 Demographic

Information

Occupations 0.15 0.36 0 1 3,754

Race 0.45 0.50 0 1 3,754

Gender 0.49 0.50 0 1 3,754

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Note: Occupation is coded as 0 for private for profit company, 1 for non-profit organization; race is coded as 0 for non-hispanic, non-black, 1 for hispanic and black; gender is coded as 0 for men, 1 for women; education level is coded as 1 for 1th grade, 2 for 2th grade, 3 for 3th grade, 4 for 4th grade, 5 for 5th grade, 6 for 6th grade, 7 for 7th grade, 8 for 8th grade, 9 for 9th grade, 10 for 10th grade, 11 for 11th grade, 12 for 12th grade, 13 for 1st year college, 14 for 2nd year college, 15 for 3th year college, 16 for 4th year college, 17 for 5th year college, 18 for 6th year college, 19 for 7th year college.

Secondly, a logit regression was conducted to investigated the relation between personality traits of the big five model and wage, and the probability of working in non- profit organizations. Five personality traits and wage are treated as independent variables.

Whether the employee works in non-profit organizations is treated as binary variable.

Gender, race, education level, hours worked per week and job satisfaction are enter as control variables. The logit regression of the whole sample is shown in formular (1).

Furthermore, the effects of the predictors were also investigated in sub-samples according to the control variables. When sub-samples are divided based on the control variable of race, the result shows significant differences. The logit regressions of the sub-samples are shown in formular (2) and (3).

Y = β

1

θ + β

2

X + β

3

G

j

+ β

4

R

t

+ β

5

J

t

+ β

6

E

d

+ β

7

H + ρ (1)

Y

hispanic_black

= β

1

θ + β

2

X + β

3

G

j

+ β

5

J

t

+ β

6

E

d

+ β

7

H + ρ (2) Y

non_hispanic_black

= β

1

θ + β

2

X + β

3

G

j

+ β

5

J

t

+ β

6

E

d

+ β

7

H + ρ (3)

Y: work in non-profit organization or not, binary variable.

Yhispanic_black: work in non-profit organization or not, being hispanic or black, binary variable.

Ynon_hispanic_black: work in non-profit organization or not, being non- hispanic and black, binary variable.

Θ: Big five personalities, in scale, independent variable

X: Wage in annual income + pension. independent variable (*before/after tax wage controlled for NGO employee taxation benefits.).

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J: job satisfaction reported by the case, independent variable Rt: race, controlled variable

Gj: gender, controlled variable

Ed: highest educational attainment ever reported by the case, controlled variable H: hours worked per week on the job

ρ: error term

In regression (1), the effect of extraversion and emotion stability is statistically significant and positively correlated with the probability of working in non-profit organizations. The p values of both are lower than 0.05. This shows that the higher level of extraversion and emotion stability in one’s personality positively, the more likely one works in non-profit organization instead of for-profit organization. Hourly wage is statistically different than zero at p=0.001 level, implying that the lower the hourly wage, the higher the chances one is working in non-profit organization. Surprisingly, the rest of the personality traits are not statistically significant. The control variables, job satisfaction, female and education level are significantly different from zero at p=0.001 level. Hours worked per week is statistically significant at p=0.05 level.

In regression (2), the effect of extraversion and emotion stability, same as the result of regression (1), is statistically significant and positively correlated with the probability of working in non-profit organizations. The p values of both are lower than 0.05. Interestingly, conscientiousness is significantly different from zero at p=0.05 level and negatively

correlated with the probability of working in non-profit organizations. Hourly wage is also statistically different than zero at p=0.05 level, similar to the result of regression (1). The rest of the personality traits are not statistically significant. The control variable female is statistically significant at p=0.01 level but less significant than that in regression (1). Hours

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worked per week and education level are statistically significant at p=0.05 level and p=0.001 level respectively. Job satisfaction is not statistically significant.

In regression (3), surprisingly, none of the personality traits are statistically significant.

Hourly wage is also statistically different than zero at p=0.001 level, more than that in regression (2). The control variables, job satisfaction, female and education level are significantly different from zero at p=0.001 level. Female is more significant than that in regression (2).

Based on the analysis results, the research question can be answered. Hypotheses 1 and 4a

can be accepted because a statistically relevant positive relation between the independent variables, extraversion and emotional stability, and the dependent variable, the probability of working in non-profit organizations, can be observed. Though agreeableness and openness to new experience are positively related to the probability of working in non- profit organizations, the effects are not significant. Conscientiousness, strangely, is negatively related to the probability of working in non-profit organizations and not significant either. Therefore, hypotheses 2, 3, 4b and 5 are rejected. Hypothesis 6 can be accepted because the result shows that hourly wage is negatively correlated with working in non-profit organizations, consistent with the findings in previous studies. The results of the control variables, gender and education level is also in accordance with the previous literature.

Table 2. The effects of Personality Traits on the Probability to Work in Non-Profit Organization (1)

Prob into Non-Profit Org.

(2)

Prob into Non-Profit Org.

Hispanic_Black

(3)

Prob into Non-Profit Org.

Non- Hispanic_Black

Extraversion 0.058* 0.088* 0.027

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Agreeableness 0.009 0.034 -0.021

(0.040) (0.057) (0.055)

Conscientiousness -0.049 -0.107* 0.012

(0.039) (0.056) (0.055)

Emotional Stability 0.064* 0.141* -0.004

(0.038) (0.058) (0.052)

Openness to New Experience

-0.017 -0.068 0.034

(0.037) (0.052) (0.052)

Hourly Wage -0.0002*** -0.0001* -0.0002***

(0.000) (0.000) (0.000)

Job Satisfaction -0.29*** -0.134 -0.429***

(0.062) (0.089) (0.086)

Female 0.790*** 0.392** 1.129***

(0.095) (0.138) (0.132)

Black_Hispanic 0.020

(0.087) Weekly Hours Worked

Education Level

-0.008* -0.012* -0.006

(0.004) (0.006) (0.005)

0.298*** 0.276*** 0.317***

Year (0.019) (0.029) (0.025)

-0.144 -0.237 -0.081

(0.095) (0.144) (0.128)

_cons -5.271*** -4.942*** -5.574***

(0.424) (0.604) (0.591)

N

4,919

2,196

2,723

Pseudo R2 0.108 0.082 0.141

Note. Statistical significance: *p <.05; **p <.01; ***p <.001

5. Conclusion, Discussion and Future Directions

This study contributes to the emerging literature by conducting a logistic regression analysis on the correlation between personality traits and wages, and the decision to work in non-profit organization. Overall, there is strong evidence supporting the premise of this study that

workers in non-profit organization are willing to donate part of their labor for lower wages and derive more utility from social benefits. In terms of personality traits, higher level of

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in non-profit organization and higher job satisfaction. This can help the recruiters of non- profit organization to better select candidates considering personality. The results of

extraversion are in line with the theoretical links hypnotized in the literature review. However, no theoretical evidence was found regarding the relation between emotion stability and the motivation into non-profit organization. Future studies can investigate the reason behind this correlation.

Moreover, this study also provides interesting findings regarding the difference between race minority groups of hispanic and black and non-minority group. In the race minority group, uniquely, the more conscientious one is, the less likely one decides to work in a non- profit organization. Job satisfaction is also not related the motivation into non-profit

organization even though it is widely believed in the academic that non-profit organizations have higher level of job satisfaction than non-profit organization. Interestingly, in the non- minority group, female participation in non-profit organization is more significant while in the race minority group such effect is less obvious. One possible explanation for this is that many of the social causes pursued by the non-profit organizations are related to the well-being of vulnerable group in the society. Thus, the minority groups are more likely to identify with such missions because of their life experience. In the non-minority group, female as a less advantaged group compared to male are more likely to agree with such missions. Future studies can further explore these nuances and better the understandings of intersectional motivation into non-profit organization.

6. Limitations

This study has several limitations that provide guidance for future research. Firstly, even though several theoretical links were found, agreeableness, conscientiousness and openness to new experience did not show significant effect on the motivation to work in non-profit

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organization in the population. One possibility is the short instrument was not able to measure personality traits accurately. If time and resources are sufficient, future research would be best to use longer instrument to gain more accurate personality results. Secondly, this study

hypothesized personality traits as antecedents of motivation into non-profit organization.

However, more factors can involve in the formulation of the motivation such as certain life experiences and events, household income, religion and influences of media, friends and family because since such motivation is usually intrinsic, it is also likely to be highly personal. Future studies can take into account of these factors to gain a more holistic

understanding of why people enter non-profit organizations. Thirdly, this study only confirms that the donative labor hypothesis that non-profit workers consider the intangible rewards as higher utility than monetary rewards. However, it was not able to explain to what extent people value specific package composition for monetary compensation, such as pension, bonus, amount of paid annual leave, or remuneration of travel. This topic will be insightful for the compensation designs in non-profit organizations.

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Reference

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