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  • January 2019
  • Article
  • American Economic Review

Making Moves Matter: Experimental Evidence on Incentivizing Bureaucrats Through Performance-Based Postings

By: Adnan Q. Khan, Asim Ijaz Khwaja and Benjamin A. Olken
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Abstract

Bureaucracies often post staff to better or worse locations, ostensibly to provide incentives. Yet we know little about whether this works, with heterogeneity in preferences over postings impacting effectiveness. We propose a performance-ranked serial dictatorship mechanism, whereby bureaucrats sequentially choose desired locations in order of performance. We evaluate this using a two-year field experiment with 525 property tax inspectors in Pakistan. The mechanism increases annual tax revenue growth by 30–41 percent. Inspectors whom our model predicts face high equilibrium incentives under the scheme indeed increase performance more. Our results highlight the potential of periodic merit-based postings in enhancing bureaucratic performance.

Keywords

Serial Dictatorship Mechanism; Employment; Geographic Location; Motivation and Incentives; Performance

Citation

Khan, Adnan Q., Asim Ijaz Khwaja, and Benjamin A. Olken. "Making Moves Matter: Experimental Evidence on Incentivizing Bureaucrats Through Performance-Based Postings." American Economic Review 109, no. 1 (January 2019): 237–270.
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About The Author

Asim Ijaz Khwaja

Entrepreneurial Management
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    • 2023
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    Crowding in Private Quality: The Equilibrium Effects of Public Spending in Education

    By: Tahir Andrabi, Natalie Bau, Jishnu Das, Asim Ijaz Khwaja and Naureen Karachiwalla
    • August 2020
    • Journal of Political Economy

    Trust in State and Non-State Actors: Evidence from Dispute Resolution in Pakistan

    By: Daron Acemoglu, Ali Cheema, Asim I. Khwaja and James A. Robinson
More from the Authors
  • Crowding in Private Quality: The Equilibrium Effects of Public Spending in Education By: Tahir Andrabi, Natalie Bau, Jishnu Das, Asim Ijaz Khwaja and Naureen Karachiwalla
  • Trust in State and Non-State Actors: Evidence from Dispute Resolution in Pakistan By: Daron Acemoglu, Ali Cheema, Asim I. Khwaja and James A. Robinson
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