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Managers' Productivity and Labor Market: Evidence from School Principals

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  • Muñoz, Pablo
  • Prem, Mounu

Abstract

We investigate whether differences in management explain variation in productivity and whether different labor market policies can impact the allocation of managerial effectiveness. Using data on the universe of students and school personnel in Chile, we establish three main findings. First, there is substantial variation in principals' ability to improve students' learning. Second, effective principals are recognized by the school community, decrease teachers' turnover, and obtain higher wages, especially in private schools. Third, despite relatively rigid wages, public schools can attract better principals by improving personnel selection.

Suggested Citation

  • Muñoz, Pablo & Prem, Mounu, 2020. "Managers' Productivity and Labor Market: Evidence from School Principals," Working papers 40, Red Investigadores de Economía.
    • Handle: RePEc:rie:riecdt:40
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    References listed on IDEAS

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    2. 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.
    3. 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.
    4. 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).

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    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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