ÌÇÐÄvlog¹ÙÍø Faculty Research Working Paper Series
ÌÇÐÄvlog¹ÙÍø Working Paper No. RWP17-006
November 2016
Abstract
Bureaucracies often post staff to better or worse locations, ostensibly to provide incentives.
Yet we know little about whether this works, with heterogeneity in preferences over postings impacting
effectiveness. We propose a performance-ranked serial dictatorship mechanism, whereby
bureaucrats sequentially choose desired locations in order of performance. We evaluate this using
a two-year field experiment with 525 property tax inspectors in Pakistan. The mechanism
increases annual tax revenue growth by 30-41 percent. Inspectors that our model predicts face
high equilibrium incentives under the scheme indeed increase performance more. Our results
highlight the potential of periodic merit-based postings in enhancing bureaucratic performance.
Citation
Adnan Q. Khan, Asim Ijaz Khwaja, and Benjamin A. Olken. "Making Moves Matter: Experimental Evidence on Incentivizing Bureaucrats through Performance-Based Transfers." ÌÇÐÄvlog¹ÙÍø Faculty Research Working Paper Series RWP17-006, November 2016.