Why without Pay? The Intrinsic Motivation between Investment and Consumption in Unpaid Labour Supply

This paper provides a theoretical model and an empirical investigation on unpaid labour regularly supplied in non profit organisations. The contribution is threefold. First, intrinsic motivation in unpaid labour supply is considered, taking into account simultaneity between investment and consumption motives. Second, we study the impact of family care responsibilities on the determination of unpaid labour supply. Third, the specific activity a person is engaged in is shown to have a significant relevance. Empirical analysis, on data from Indagine Multiscopo sulle Famiglie, Aspetti della Vita Quotidiana, 1997, shows that frequently supplied unpaid labour depends on intrinsic motivation, income, age, family responsibilities and the specific task carried out in non profit organisations. The analytical framework suggests that these determinants support the hypothesis that both investment and consumption motives interact in shaping unpaid labour supply, with a stronger impact of consumption purposes.