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Promotion Incentives in the Public Sector: Evidence from Chinese Schools

Authors Karachiwalla, Naureen I.
Park, Albert Francis View this author's profile
Issue Date 2017
Source Journal of Public Economics , v. 146, February 2017, p. 109-128
Summary We provide evidence that promotion incentives influence the effort of public employees by studying China's system of promotions for teachers. Predictions from a tournament model of promotion are tested using retrospective panel data on primary and middle school teachers. Consistent with theory, high wage increases for promotion are associated with better performance, teachers increase effort in years leading up to promotion eligibility, and they reduce effort if they are repeatedly passed over for promotion. Evaluation scores are positively associated with teacher time use and with student test scores, diminishing concerns that evaluations are manipulated. © 2016
ISSN 0047-2727
Language English
Format Article
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