Are Bureaucrats Really Paid Like Bureaucrats?

18 Pages Posted: 6 Jun 2013 Last revised: 16 Dec 2014

See all articles by Glenn Boyle

Glenn Boyle

University of Canterbury - Economics and Finance; Sapere Research Group

Scott Rademaker

University of Canterbury - Economics and Finance

Date Written: March 9, 2014

Abstract

In an influential paper, Hall and Liebman (QJE, 1998) ask if corporate CEOs are really paid like bureaucrats, and conclude that they are not. In this paper, we ask if senior bureaucrats are really paid like bureaucrats, and conclude that they too are not. However, there is an important difference: whereas the Hall and Liebman CEOs face high-powered performance incentives, the bureaucrats in our sample are rewarded for what appears to be ‘empire building’, consistent with the public choice view of bureaucracy.

Keywords: bureaucrats, remuneration, motivation, incentives, empire building

JEL Classification: G34, J33

Suggested Citation

Boyle, Glenn and Rademaker, Scott, Are Bureaucrats Really Paid Like Bureaucrats? (March 9, 2014). Available at SSRN: https://ssrn.com/abstract=2275016 or http://dx.doi.org/10.2139/ssrn.2275016

Glenn Boyle (Contact Author)

University of Canterbury - Economics and Finance ( email )

Private Bag 4800
Christchurch
New Zealand

Sapere Research Group ( email )

Level 9, Pencarrow House
1 Willeston St
Wellington, 6140
New Zealand

Scott Rademaker

University of Canterbury - Economics and Finance ( email )

Private Bag 4800
Christchurch
New Zealand

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