Individual Demand for Building State Effectiveness

Harry J. Dienes, Daniel Rogger, Yetsedaw Emagne and Giulio Schinaia

No 11299, Policy Research Working Paper Series from The World Bank

Abstract: Investments in public sector workers’ human capital can generate social returns by improving service delivery and state effectiveness. Yet it is unclear whether public workers internalise these broader benefits when making investment decisions. This study elicited willingness-to-pay (WTP) for professional development from Ethiopian public servants and embedded randomised interventions targeting anticipated benefits. Baseline WTP is positive but below implementation costs. Explicitly emphasising private benefits modestly raises demand compared to highlighting societal returns. Implicitly increasing the salience of a supportive managerial environment substantially increases WTP, underscoring the role of perceived organisational norms in public service investment decisions.

Date: 2026-01-15
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