informed about her ability and her motivation. Firms differ both in their production technology and in the mission they pursue …. When the difference is not very high, then agent types sort themselves by motivation: the mission-oriented firm hires … worker is paid less by the mission-oriented firm. Such an earnings penalty is driven entirely by motivation, is increasing in …

social preferences. In a single-period setting, only moderately altruistic leaders use praise as a motivation tool, whereas …