Current EOPP Research:
Are Public Sector CEOs Different? Leadership Wages and Performance in Schools
Tim Besley (with Stephen Machin, UCL)
Abstract:
This paper uses a unique data set to investigate the link between
the pay and performance of school principals. It is frequently argued
that public sector CEOs are paid like bureaucrats with little reward
for good performance. However, this ignores the possibility of implicit
labor market incentives. We show that pay is indeed linked to publicly observable performance measures. Moreover poorly performing
principals face a higher chance of being replaced. These findings for
the public sector parallel what has been found by looking at the pay
and performance of private sector CEOs.
Related Paper
Are Public Sector CEOs Different? Leadership Wages and Performance in Schools
