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The Role of Incentives in the Public Sector: Issues and Evidence Author info | Abstract | Publisher info | Download info | Related research | Statistics Simon Burgess
Marisa Ratto ()
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Using incentive pay to improve public sector efficiency is an important component of the UK Government's public service modernisation agenda. In this paper, we review the important issues in performance pay in the public sector, and summarise the evidence on its effects. We consider how optimal incentives for public sector workers may differ from those in the private sector, and if so, what types of incentives are more appropriate for the public sector. We investigate the reasons for the infrequent use of explicit incentives in the public sector. We summarise evidence of particular relevance to the public sector, on issues such as the impact on output of incentive pay schemes, gaming and dysfunctional behaviour, multiple principals, intrinsic motivation and team-work. Finally, we comment on the design of new policies being introduced in the UK public sector in the light of the theoretical arguments and the evidence.
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Paper provided by Department of Economics, University of Bristol, UK in its series The Centre for Market and Public Organisation with number
03/071.
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Length: 31 pages
Date of creation: May 2003Date of revision:
Handle: RePEc:bri:cmpowp:03/071Contact details of provider: Postal: Mary Paley Building, 12 Priory Road, Bristol, BS8 1TN Phone: 0117 954 6943 Fax: 0117 954 6997 Email: Web page: http://www.bris.ac.uk/cmpo/ More information through EDIRC
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Keywords: incentives public sector Other versions of this item:
Find related papers by JEL classification: H4 - Public Economics - - Publicly Provided Goods J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
This paper has been announced in the following NEP Reports :
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