Incentives in the Public Sector: Evidence from a Government Agency
The paper addresses a lack of evidence on the impact of performance pay in the public sector by
evaluating a pilot scheme of incentives in a major government agency. The authors focus on three main issues: whether performance pay matters for public service workers; what the team basis of the scheme implies; and the impact of the differential measurement precision.
Link
http://www.bris.ac.uk/Depts/CMPO/workingpapers/wp103.pdf