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Performance-related-pay nel pubblico impiego: un'analisi economica

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  • Nicola Meccheri

Abstract

Why have not performance-related-pay methods in the civil service confirmed positive results obtained in private business firms? Are such methods effectively useful tools in human resources practices within public organisations? How should we introduce them in public organisations and which are particular problems we find respect on their use within business firms? This paper aims to answer such questions referring to the economic theory of incentives and contracts. In particular, an agency model with multidimensional effort is presented and it is then extended in order to analyse the effects produced on incentives by dimension plurality of social welfare, civil servants risk-aversion, difficulties in measuring public goals (which imposes the use of proxies of performance), and preferences heterogeneity of political and institutional principals holding Public Administration. Policy implications which derive are discussed. Although, in general, public sector results to be a less suitable environment for the use of performance-related-pay practices, some important institutional and managerial changes could contribute to improve their effectiveness. In particular, performance subjective evaluation by managers, administrative and bargaining de-centralisation, political and managerial separation, if well realised, can act in such a way.

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Bibliographic Info

Paper provided by Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy in its series Discussion Papers with number 2003/3.

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Date of creation: 01 Jul 2003
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Handle: RePEc:pie:dsedps:2003/3

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Keywords: performance-related-pay; economics of contracts; civil service;

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Cited by:
  1. Luciano Fanti & Luca Gori, 2012. "Endogenous Lifetime in an Overlapping-Generations Small Open Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, Mohr Siebeck, Tübingen, vol. 68(2), pages 121-152, June.
  2. Luciano Fanti & Luca Gori, 2009. "On economic growth and minimum wages," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2009/78, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  3. Luciano Fanti & Luca Gori, 2009. "Endogenous fertility, endogenous lifetime and economic growth: the role of health and child policies," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2009/91, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  4. Luciano Fanti & Luca Gori, 2009. "Child policy solutions for the unemployment problem," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2009/76, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  5. Luciano Fanti & Luca Gori, 2009. "Longevity, fertility and PAYG pension systems sustainability," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2009/77, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  6. Manuela Gussoni - Andrea Mangani, 2009. "The impact of public funding for innovation on firms' R&D investments: Do R&D cooperation and appropriability matter?," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2009/90, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  7. Lorenzo Corsini & Elisabetta Olivieri, 2008. "Technological Change and the Wage Differential between Skilled and Unskilled Workers: Evidence from Italy," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2008/73, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  8. Lorenzo Corsini & Pier Mario Pacini & Luca Spataro, 2010. "Workers' Choice on Pension Schemes: an Assessment of the Italian TFR Reform Through Theory and Simulations," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2010/96, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  9. Luciano Fanti & Luca Gori, 2008. "PAYG pensions and economic cycles: exogenous versus endogenous fertility," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2008/75, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  10. Luca Gori, 2009. "Endogenous fertility, family policy and multiple equilibria," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2009/79, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

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