The Role of Incentives in the Public Sector : Issues and Evidence

  title={The Role of Incentives in the Public Sector : Issues and Evidence},
  author={Simon Burgess and Marisa Ratto},
Using incentive pay to improve public sector efficiency is an important component of the UK Government’s public service modernisation agenda. In this paper, we review the important issues in performance pay in the public sector, and summarise the evidence on its effects. We consider how optimal incentives for public sector workers may differ from those in the private sector, and if so, what types of incentives are more appropriate for the public sector. We investigate the reasons for the… CONTINUE READING
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