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Managers' Productivity and Recruitment in the Public Sector

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  • Pablo Muñoz
  • Mounu Prem

Abstract

Governments face many constraints in attracting talented managers to the public sector, which often lacks high-powered incentives. In this paper, we study how a civil service reform in Chile changed the effectiveness of a vital group of public sector managers: school principals. First, we estimate principal effectiveness by using an extension of the canonical teacher value-added model. Then we evaluate the effect of the reform on principal effectiveness using a difference-in-differences approach. We find that public schools appointed more effective managers and improved their students' outcomes after increasing the competitiveness and transparency of their selection process.

Suggested Citation

  • Pablo Muñoz & Mounu Prem, 2024. "Managers' Productivity and Recruitment in the Public Sector," American Economic Journal: Economic Policy, American Economic Association, vol. 16(4), pages 223-253, November.
    • Handle: RePEc:aea:aejpol:v:16:y:2024:i:4:p:223-53
    DOI: 10.1257/pol.20220732
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    References listed on IDEAS

    as
    1. David Card & Ana Rute Cardoso & Joerg Heining & Patrick Kline, 2018. "Firms and Labor Market Inequality: Evidence and Some Theory," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 13-70.
    2. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    3. David Card & Jörg Heining & Patrick Kline, 2013. "Workplace Heterogeneity and the Rise of West German Wage Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(3), pages 967-1015.
    4. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
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    Cited by:

    1. Mizuno, Nobuhiro & Okazawa, Ryosuke, 2025. "A dynamic theory on clientelism and bureaucratic development," Journal of Development Economics, Elsevier, vol. 174(C).

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    More about this item

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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