Improved incentive structures for working in the public sector

The public sector is facing demographic changes and has to compete with the private sector for talents. Incentives like, for example, an adequate payment or the possibility of mobile working, seem important to retain young and qualified employees in the long term and to increase the job satisfaction of all employees. The interviewed public administration employees criticised a lack of appreciation of their work. Above-mentioned incentives can help to decrease the employees’ turnover intention and instead increase their motivation and productivity.[1]

Incentives in public administration have relevance in all policy cycle stages, especially in agenda setting, formulation and implementation.

[1] Bugess, S., Propper, C., Ratto, M., Tominey, E. (2017), Incentives in the Public Sector: Evidence from a Government Agency, The Economic Journal, 127(605), F117-F141, https://doi.org/10.1111/ecoj.12422.