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Promotion Incentives in the Public Sector: Evidence from Chinese Schools

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  • Karachiwalla, Naureen
  • Park, Albert

Abstract

We provide evidence that promotion incentives influence the effort of public employees by studying China's system of promotions for teachers. Predictions from a tournament model of promotion are tested using retrospective panel data on primary and middle school teachers. Consistent with theory, promotions are associated with wage increases, higher wage increases are associated with better performance, and teachers increase effort in years leading up to promotion eligibility but reduce effort if they are repeatedly passed over for promotion. Evaluation scores are positively associated with teacher time use and with student test scores, diminishing concerns that evaluations are manipulated.

Suggested Citation

  • Karachiwalla, Naureen & Park, Albert, 2016. "Promotion Incentives in the Public Sector: Evidence from Chinese Schools," CEPR Discussion Papers 11704, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11704
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    References listed on IDEAS

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    Cited by:

    1. Andrew Dustan & Stanislao Maldonado & Juan Manuel Hernandez-Agramonte, 2018. "Motivating bureaucrats with non-monetary incentives when state capacity is weak: Evidence from large-scale field experiments in Peru," Working Papers 136, Peruvian Economic Association.
    2. Andrew Dustan & Juan Manuel Hernandez-Agramonte & Stanislao Maldonado, 2018. "Motivating bureaucrats with non-monetary incentives when state capacity is weak: Evidence from large-scale," Natural Field Experiments 00664, The Field Experiments Website.
    3. Geys, Benny & Heggedal, Tom-Reiel & Sørensen, Rune J., 2017. "Are bureaucrats paid like CEOs? Performance compensation and turnover of top civil servants," Journal of Public Economics, Elsevier, vol. 152(C), pages 47-54.
    4. Zhang, Haifeng & Zhang, Junsen & Zhang, Yanfeng, 2019. "Do tournament incentives matter in academics? Evidence from personnel data in a top-tier university in China," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 84-106.
    5. Hu, Feng, 2018. "Migrant peers in the classroom: Is the academic performance of local students negatively affected?," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 582-597.

    More about this item

    Keywords

    China; incentives; promotions; teachers;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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