Promotion Incentives in the Public Sector: Evidence from Chinese Schools

59 Pages Posted: 27 Feb 2017

See all articles by Naureen Karachiwalla

Naureen Karachiwalla

International Food Policy Research Institute (IFPRI)

Albert Park

University of Michigan at Ann Arbor - The William Davidson Institute; Harvard University - Fairbank Center for East Asian Research

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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, high wage increases for promotion are associated with better performance, teachers increase effort in years leading up to promotion eligibility, and 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: teacher incentives, promotions, China

JEL Classification: J31, J33, J45, M51

Suggested Citation

Karachiwalla, Naureen and Park, Albert Francis, Promotion Incentives in the Public Sector: Evidence from Chinese Schools. IZA Discussion Paper No. 10547, Available at SSRN: https://ssrn.com/abstract=2923630

Naureen Karachiwalla (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

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Washington, DC 20005
United States

Albert Francis Park

University of Michigan at Ann Arbor - The William Davidson Institute ( email )

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

Harvard University - Fairbank Center for East Asian Research

1737 Cambridge Street
Coolidge Hall 308
Cambridge, MA 02138

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