Promotion Incentives in the Public Sector: Evidence from Chinese Schools

59 Pages Posted: 16 Dec 2016  

Naureen Karachiwalla

International Food Policy Research Institute (IFPRI)

Albert Park

Hong Kong University of Science & Technology (HKUST); Hong Kong University of Science & Technology (HKUST) - HKUST Institute for Emerging Market Studies (IEMS)

Multiple version iconThere are 3 versions of this paper

Date Written: December 2016

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, promotions are associated with wage increases, higher wage increases are associated with better performance, and teachers increase effort in years leading up to promotion eligibility but 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.

Keywords: China, incentives, promotions, teachers

JEL Classification: J31, J33, J45, M51

Suggested Citation

Karachiwalla, Naureen and Park, Albert, Promotion Incentives in the Public Sector: Evidence from Chinese Schools (December 2016). CEPR Discussion Paper No. DP11704. Available at SSRN: https://ssrn.com/abstract=2886516

Naureen Karachiwalla (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

2033 K Street, NW
Washington, DC 20006
United States

Albert Park

Hong Kong University of Science & Technology (HKUST) ( email )

Clearwater Bay
Kowloon, 999999
Hong Kong

Hong Kong University of Science & Technology (HKUST) - HKUST Institute for Emerging Market Studies (IEMS) ( email )

IAS 2019, Lo Ka Chung Building,
Lee Shau Kee Campus, HKUST
Clear Water Bay, Kowloon
Hong Kong

HOME PAGE: http://iems.ust.hk

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