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Are bureaucrats paid like CEOs? Performance compensation and turnover of top civil servants

Geys, Benny; Heggedal, Tom-Reiel; Sørensen, Rune Jørgen
Journal article, Peer reviewed
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URI
http://hdl.handle.net/11250/2449041
Date
2017
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  • Scientific articles [1722]
Original version
Journal of Public Economics, 152(2017), 47-54   https://doi.org/10.1016/j.jpubeco.2017.05.006
Abstract
Recent research explores the effect of financial and career incentives on public-sector hiring processes and subsequent performance. The reverse relation between performance and bureaucrats' compensation and turnover has received only limited attention. Due to the distinct features of public-sector organizations, bureaucrats are traditionally argued to require either permanent positions and fixed wages, or low-powered performance incentives. This article studies how the performance of top civil servants in Norwegian local governments affects their compensation and turnover. We thereby build on a unique new dataset over the period 1991–2014. Our results indicate that better performing top civil servants obtain a higher compensation and are less likely to be replaced. Nonetheless, these incentives remain low-powered in line with agency theory prescriptions..
Description
The accepted and peer reviewed manuscript to the article cited below. It may contain minor differences from the journal's pdf version
Publisher
Elsevier
Journal
Journal of Public Economics

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