We develop a model where people differ in their altruistic preferences and can serve the public interest in two ways: by making donations to charity and by taking a public service job and exerting effort on the job. Our theory predicts that people who are more altruistic are more likely to take...

The public sector often has to initially provide funding and centralized coordination to assist different social enterprises in an emerging industry that are expected to self-sustain and develop further afterwards. As the public sector gradually pulls its funding and centralized coordination,...