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Promotion Incentives in the Public Sector: Evidence from Chinese Schools

Author

Listed:
  • Albert Park
  • Naureen Karachiwalla

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, high wage increases for promotion are associated with better performance, teachers increase effort in years leading up to promotion eligibility, and 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

  • Albert Park & Naureen Karachiwalla, 2017. "Promotion Incentives in the Public Sector: Evidence from Chinese Schools," Working Papers id:11648, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:11648
    Note: Institutional Papers
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    Cited by:

    1. Park, Albert & Shi, Xinzheng & Hsieh, Chang-tai & An, Xuehui, 2015. "Magnet high schools and academic performance in China: A regression discontinuity design," Journal of Comparative Economics, Elsevier, vol. 43(4), pages 825-843.
    2. Paredes, Tatiana & Sevilla, Almudena, 2024. "The impact of incentivizing training on students’ outcomes," Economics of Education Review, Elsevier, vol. 98(C).
    3. 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.
    4. Luca Picariello, 2019. "Promotions and Training: Do Competitive Firms Set the Bar too High?," CSEF Working Papers 552, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    5. World Bank, 2024. "Pacific Economic Update, March 2024," World Bank Publications - Reports 41160, The World Bank Group.
    6. Dustan, Andrew & Hernandez-Agramonte, Juan Manuel & Maldonado, Stanislao, 2023. "Motivating bureaucrats with behavioral insights when state capacity is weak: Evidence from large-scale field experiments in Peru," Journal of Development Economics, Elsevier, vol. 160(C).
    7. Erika Deserranno & Philipp Kastrau & Gianmarco León-Ciliotta, 2025. "Promotions and Productivity: The Role of Meritocracy and Pay Progression in the Public Sector," American Economic Review: Insights, American Economic Association, vol. 7(1), pages 71-89, March.
    8. 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.
    9. Dustan, Andrew & Maldonado, Stanislao & Hernandez-Agramonte, Juan Manuel, 2018. "Motivating bureaucrats with non-monetary incentives when state capacity is weak: Evidence from large-scale field experiments in Peru," MPRA Paper 90952, University Library of Munich, Germany.
    10. Deserranno, Erika & Leon-Ciliotta, Gianmarco, 2022. "Promotions and Productivity: The Role of Meritocracy and Pay Progression in the Public Sector," CEPR Discussion Papers 15837, C.E.P.R. Discussion Papers.
    11. Chang, Fang & Wang, Huan & Qu, Yaqiong & Zheng, Qiang & Loyalka, Prashant & Sylvia, Sean & Shi, Yaojiang & Dill, Sarah-Eve & Rozelle, Scott, 2020. "The impact of pay-for-percentile incentive on low-achieving students in rural China," Economics of Education Review, Elsevier, vol. 75(C).
    12. Yu Bai & Yanjun Li, 2022. "Political tournaments and regional growth‐enhancing policies: Evidence from Chinese prefectures," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1358-1385, November.
    13. 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.
    14. 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.
    15. Aisha J Ali & Javier Fuenzalida & Margarita Gómez & Martin J Williams, 2021. "Four lenses on people management in the public sector: an evidence review and synthesis," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(2), pages 335-366.

    More about this item

    Keywords

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    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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