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Managers' Productivity and Recruitment in the Public Sector

Pablo Muñoz and Mounu Prem

American Economic Journal: Economic Policy, 2024, vol. 16, issue 4, 223-53

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.

JEL-codes: D73 H83 I21 J24 J45 O15 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1257/pol.20220732

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