òòò½Íø Review: Insights
ISSN 2640-205X (Print) | ISSN 2640-2068 (Online)
Promotions and Productivity: The Role of Meritocracy and Pay Progression in the Public Sector
òòò½Íø Review: Insights
(pp. 71–89)
Abstract
We study promotion incentives in the public sector. In collaboration with Sierra Leone's Ministry of Health, we introduce exogenous variation in the meritocratic nature of promotions from health worker to supervisor positions and in health workers' perceptions of pay progression upon promotion. Ten months later, our findings reveal that meritocracy leads to a 22 percent increase in health workers' productivity. Greater perceived pay progression in a meritocratic system boosts productivity by 23 percent, whereas in a less meritocratic system, it decreases productivity by 27 percent. We show that this reduction is consistent with a negative morale effect.Citation
Deserranno, Erika, Philipp Kastrau, and Gianmarco León-Ciliotta. 2025. "Promotions and Productivity: The Role of Meritocracy and Pay Progression in the Public Sector." òòò½Íø Review: Insights 7 (1): 71–89. DOI: 10.1257/aeri.20230594Additional Materials
JEL Classification
- C93 Field Experiments
- H51 National Government Expenditures and Health
- I11 Analysis of Health Care Markets
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials
- M51 Personnel Economics: Firm Employment Decisions; Promotions
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration