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Managers’productivity and recruitment in the public sector: the case of school principals

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  • Muñoz, Pablo
  • Prem, Mounu

Abstract

We study whether differences in management can explain variation in productivity and how more effective managers can be recruited in absence of high-powered incentives. To investigate this, we first extend the canonical teacher value-added model to account for school principals, and we document substantial variation in their ability to improve students’ learning. Teachers’ survey responses and quasi-experimental designs based on changes in school management validate our measure of principal effectiveness. Then, we leverage the timing of adoption of a civil service reform and show that despite having relatively rigid wages, public schools were able to attract more effective managers after increasing the competitiveness and transparency of their personnel selection process.

Suggested Citation

  • Muñoz, Pablo & Prem, Mounu, 2021. "Managers’productivity and recruitment in the public sector: the case of school principals," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 824, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    • Handle: RePEc:fgv:epgewp:824
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    References listed on IDEAS

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    1. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    2. Kremer, M & Maskin, E, 1996. "Wage Inequality and Segregation by Skill," Working papers 96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
    3. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    4. John M. Abowd & Henry S. Farber, 1982. "Job Queues and the Union Status of Workers," ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
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    2. Bazzi,Samuel & Hilmy,Masyhur & Marx,Benjamin & Mahvish Ifrah Shaukat & Stegmann,Andreas, 2024. "It Takes a Village Election : Turnover and Performance in Local Bureaucracies," Policy Research Working Paper Series 10920, The World Bank.
    3. Bruna Borges & Gabriel Leite & Ricardo Madeira & Luis Meloni, 2024. "Evaluating the impact of a principals' professional development program on school management practices: Evidence from Brazil," Working Papers, Department of Economics 2024_03, University of São Paulo (FEA-USP).
    4. Emma Duchini & Victor Lavy & Stephen Machin & Shqiponja Telhaj, 2025. "Personnel policy in public sector organizations: evidence from England's academy schools," CEP Discussion Papers dp2129, Centre for Economic Performance, LSE.

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    More about this item

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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