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

A-Tier
Journal: Journal of Public Economics
Year: 2017
Volume: 152
Issue: C
Pages: 47-54

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

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.

Technical Details

RePEc Handle
repec:eee:pubeco:v:152:y:2017:i:c:p:47-54
Journal Field
Public
Author Count
3
Added to Database
2026-01-25