Managers' Productivity and Recruitment in the Public Sector
87 Pages Posted: 13 Nov 2019 Last revised: 21 Nov 2022
Date Written: November 21, 2022
Abstract
Governments face many constraints in attracting talented managers to the public sector, where high-powered incentives are often absent. 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. We measure principals’ effectiveness using an extension of the canonical teacher value-added model and we evaluate the effect of the reform using a difference-in-differences approach. We find that public schools appoint more effective managers and improve their students’ outcomes after increasing the competitiveness and transparency of their selection process.
Keywords: Public sector, Recruitment, School principals, Managers
JEL Classification: J3, J8, M5, I2
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