Jul 27, 2012

The power of higher wages

Based on the experimental design, we show that offering higher wages attracts individuals with higher previous earnings, and who have both higher IQ and more desirable personality traits, as measured by the Big 5 personality and public service motivation tests.
The announcements were made to recruit for public sector positions. 
That is from a new paper, "Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service," by Dal Bó, Finan, and Rossi (June 2012). Evidence for efficiency wages

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