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Incentives in the public sector: evidence from a government agency

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Title: Incentives in the public sector: evidence from a government agency
Authors: Burgess, S
Propper, C
Tominey, E
Item Type: Journal Article
Abstract: We study the impact of team-based performance pay in a major UK government agency, the public employment service. The scheme covered quantity and quality targets, measured with varying degrees of precision. We use unique data from the agency’s performance management system and personnel records, linked to local labour market data. We show that on average the scheme had no significant effect but had a substantial positive effect in small teams, fitting an explanation combining free riding and peer monitoring. We also show that the impact was greater on better-measured quantity outcomes than quality outcomes. The scheme was very cost effective in small offices.
Issue Date: 24-Oct-2017
Date of Acceptance: 20-Jan-2016
URI: http://hdl.handle.net/10044/1/30848
DOI: https://dx.doi.org/10.1111/ecoj.12422
ISSN: 1468-0297
Publisher: Wiley
Start Page: F117
End Page: F141
Journal / Book Title: Economic Journal
Volume: 127
Issue: 605
Copyright Statement: © 2017 Royal Economic Society. This is the pre-peer reviewed version of the following article, which has been published in final form at https://onlinelibrary.wiley.com/doi/abs/10.1111/ecoj.12422
Keywords: 14 Economics
Economics
Publication Status: Published
Appears in Collections:Imperial College Business School