@article {1974286,
	title = {Selection benefits of below-market pay in social-mission organizations: effects on individual performance and team cooperation},
	journal = {The Accounting Review},
	volume = {95},
	year = {2020},
	month = {2020},
	pages = {57-77},
	abstract = {Many organizations whose core purpose is to advance a social mission pay employees below-market wages. We investigate two under-appreciated benefits of below-market pay in these social-mission organizations. In a series of experiments, we predict and find that, holding employees{\textquoteright} outside opportunities constant, those attracted to social-mission organizations that pay below-market wages perform better individually and cooperate more effectively in teams than those attracted to social-mission organizations that pay higher wages. The individual performance effect arises because below-market pay facilitates the selection of value-congruent employees who are naturally inclined to work hard for the organizational mission. The team cooperation effect arises because employees expect team members who have selected a social-mission job that pays below market to be more value-congruent and, therefore, more cooperative than those who have selected a social-mission job that pays higher wages. Collectively, we demonstrate that in social-mission organizations, offering below-market pay can yield selection benefits.},
	keywords = {Accounting},
	author = {Chen,Clara and Pesch,Heather and Wang,Laura}
}
