Managers' Productivity and Recruitment in the Public Sector: The Case of School Principals
72 Pages Posted: 13 Nov 2019 Last revised: 24 Sep 2021
Date Written: September 24, 2021
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 affected 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 after increasing the competitiveness and transparency of their selection process. Our result shows that despite rigid wage schemes, the public sector can enhance public service provision trough better recruitment policies.
Keywords: Public sector, Recruitment, School principals, Managers
JEL Classification: J3, J8, M5, I2
Suggested Citation: Suggested Citation