Ernesto Dal Bó|Frederico Finan|Máximo Rossi
Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service*
University of San Andrés|National Bureau of Economic Research|University of California, Berkeley|University of San Andrés|National Bureau of Economic Research|University of California, Berkeley|University of San Andrés|National Bureau of Economic Research|University of California, Berkeley
abstract study recent recruitment drive public sector positions mexico different salaries announced randomly across recruitment sites job offers subsequently randomized screening relied exams designed measure applicants intellectual ability personality motivation allows first experimental estimates 1 role financial incentives attracting larger qualified pool applicants 2 elasticity labor supply facing employer 3 role job attributes distance attractiveness municipal environment helping fill vacancies well role wages helping fill positions less attractive municipalities theoretical model job applications acceptance guides empirical inquiry find higher wages attract able applicants measured iq personality proclivity toward public sector workthat find evidence adverse selection effects motivation higher wage offers also increased acceptance rates implying labor supply elasticity around 2 degree monopsony power distance worse municipal characteristics strongly decrease acceptance rates higher wages help bridge recruitment gap worse municipalities