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American Economic Journal:
Economic Policy

ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)

Managers' Productivity and Recruitment in the Public Sector

  • Pablo Muñoz
  • Mounu Prem
American Economic Journal: Economic Policy
vol. 16, no. 4, November 2024
(pp. 223–53)
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Abstract

Governments face many constraints in attracting talented managers to the public sector, which often lacks high-powered incentives. 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. First, we estimate principal effectiveness by using an extension of the canonical teacher value-added model. Then we evaluate the effect of the reform on principal effectiveness using a difference-in-differences approach. We find that public schools appointed more effective managers and improved their students' outcomes after increasing the competitiveness and transparency of their selection process.

Citation

Muñoz, Pablo, and Mounu Prem. 2024. "Managers' Productivity and Recruitment in the Public Sector." American Economic Journal: Economic Policy, 16 (4): 223–53. DOI: 10.1257/pol.20220732

Additional Materials

JEL Classification

  • D73 Bureaucracy; Administrative Processes in Public Organizations; Corruption
  • H83 Public Administration; Public Sector Accounting and Audits
  • I21 Analysis of Education
  • J24 Human Capital; Skills; Occupational Choice; Labor Productivity
  • J45 Public Sector Labor Markets
  • O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
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