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Public sector motivation and development failures
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Macchiavello, Rocco (2008) Public sector motivation and development failures. Journal of Development Economics, Vol.86 (No.1). pp. 201-213. doi:10.1016/j.jdeveco.2007.06.003 ISSN 03043878.
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Official URL: http://dx.doi.org/10.1016/j.jdeveco.2007.06.003
Abstract
This paper provides a theoretical analysis of the relationship between public sector motivation and development. In the model the public sector produces a public good and workers are heterogeneous in terms of public sector motivation (PSM). Wages in the private sector increase with the quality of the public good. In this context, public sector wage premia (PSWP) have two opposite effects: low PSWP helps screen workers with PSM into the public sector, while high PSWP helps motivate workers to be honest. Raising PSWP may not improve the quality of governance and multiple equilibria might arise. The model highlights that the relative importance of workers selection and provision of ”on the job” incentives in the public sector varies in systematic ways with wages in the private sector. We provide anecdotal and original empirical evidence consistent with the theoretical predictions and discuss some policy implications for public sector reforms in developing countries.
Item Type: | Journal Article | ||||
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Divisions: | Faculty of Social Sciences > Economics | ||||
Journal or Publication Title: | Journal of Development Economics | ||||
Publisher: | Elsevier BV * North-Holland | ||||
ISSN: | 03043878 | ||||
Official Date: | 2008 | ||||
Dates: |
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Volume: | Vol.86 | ||||
Number: | No.1 | ||||
Page Range: | pp. 201-213 | ||||
DOI: | 10.1016/j.jdeveco.2007.06.003 | ||||
Status: | Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Restricted or Subscription Access |
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