Management and Performance in the Public Sector: Evidence from German Municipalities

Working Paper: CEPR ID: DP17670

Authors: Florian Englmaier; Gerd Muehlheusser; Andreas Roider; Niklas Wallmeier

Abstract: We study management practices and performance of public sector organizations in Germany. For a representative sample of municipalities, we provide survey evidence for substantial heterogeneity in the use of structured management practices. This heterogeneity is not driven by differences across states, regional types, or population size. Moreover, we document a systematic positive relationship between the degree of structured management and a diverse set of performance measures capturing municipalities' attractiveness for citizens and firms. Topic modelling (LDA) of survey responses suggests that management styles differ indeed in the extent of structured management, with many municipalities displaying relatively little of it.

Keywords: management practices; public sector organizations; local government; municipal performance; world management survey

JEL Codes: D20; D73; H11; H73; R50


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
structured management practices (L23)municipal performance indicators (H70)
management score (M54)municipal performance indicators (H70)
management score (M54)net migration (F22)
management score (M54)income tax revenue (H20)
monitoring of service quality (L15)municipal performance indicators (H70)
human resource management practices (M51)municipal performance indicators (H70)

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