Affiliation:
1. Peking University
2. Stanford University
3. University of North Carolina, Chapel Hill
4. University College London
Abstract
Abstract
Unlike performance incentives for private sector managers, little is known about performance incentives for managers in public sector bureaucracies. Through a randomized trial in rural China, we study performance incentives rewarding school administrators for reducing student anemia—as well as complementarity between incentives and orthogonally assigned discretionary resources. Large (but not small) incentives and unrestricted grants both reduced anemia, but incentives were more cost-effective. Although unrestricted grants and small incentives do not interact, grants fully crowd-out the effect of larger incentives. Our findings suggest that performance incentives can be effective in bureaucratic environments, but they are not complementary to discretionary resources.
Funder
National Institutes of Health
Economic and Social Research Council
Publisher
Oxford University Press (OUP)
Subject
General Economics, Econometrics and Finance
Cited by
3 articles.
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