This paper studies the impacts of managers in the administrative public sector using novel Italian administrative data containing an output‐based measure of productivity. Exploiting the rotation of managers across sites, I find that a one standard deviation increase in managerial talent raises office productivity by 10%. These gains are driven primarily by the exit of older workers who retire when more productive managers take over. I use these estimates to evaluate the optimal allocation of managers to offices. I find that assigning better managers to the largest and most productive offices would increase output by at least 6.9%.
CITATION STYLE
Fenizia, A. (2022). Managers and Productivity in the Public Sector. Econometrica, 90(3), 1063–1084. https://doi.org/10.3982/ecta19244
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