Promotions and Productivity: The Role of Meritocracy and Pay Progression in the Public Sector

A-Tier
Journal: American Economic Review: Insights
Year: 2025
Volume: 7
Issue: 1
Pages: 71-89

Authors (3)

Erika Deserranno (not in RePEc) Philipp Kastrau (not in RePEc) Gianmarco León-Ciliotta (Centre for Economic Policy Res...)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study promotion incentives in the public sector. In collaboration with Sierra Leone's Ministry of Health, we introduce exogenous variation in the meritocratic nature of promotions from health worker to supervisor positions and in health workers' perceptions of pay progression upon promotion. Ten months later, our findings reveal that meritocracy leads to a 22 percent increase in health workers' productivity. Greater perceived pay progression in a meritocratic system boosts productivity by 23 percent, whereas in a less meritocratic system, it decreases productivity by 27 percent. We show that this reduction is consistent with a negative morale effect.

Technical Details

RePEc Handle
repec:aea:aerins:v:7:y:2025:i:1:p:71-89
Journal Field
General
Author Count
3
Added to Database
2026-01-25