This paper examines the effects of pecuniary compensation on the ability and motivation of individuals inorganizations with non-pecuniary or pro-social missions. In particular, the paper compares flat pay systems, unrelated with ability or effort, to two other systems that are considered...

The adequacy of compensation for government workers and the affordability of the public sector wage bill are important concerns for many developing countries. Suitable pay is considered a necessary -- albeit far from sufficient -- condition for attracting and retaining skilled public sector...

Pay schemes in the public sector aim to attract motivated, high-ability applicants. A nascent literature has found positive effects of higher pay on ability and no or slightly positive effects on motivation. This paper revisits this issue with a novel subject pool, students destined for the...

As agents of the state, civil servants play a central role in public governance and socioeconomic development. In developing countries, an effective civil service pay system may provide strong incentives for better public service and rein in corruption, whereas poor remuneration can fuel...

In many developing countries (and beyond), public sector workers are not just simply implementers of policies designed by the politicians in charge of supervising them -- so called agents and principals, respectively. Public sector workers can have the power to influence whether politicians are...

Competitive exams are a standard method for selecting civil servants. Yet, evidence on the effectiveness of such approach is mixed, and lack of personnel data limits our understanding of the mechanisms underlying this varying success. We digitize personnel and financial data to study the impacts...