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Sustaining Honesty in Public Service: The Role of Selection

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  • Sebastian Barfort
  • Nikolaj A. Harmon
  • Frederik Hjorth
  • Asmus Leth Olsen

Abstract

We study the role of self-selection into public service in sustaining honesty in the public sector. Focusing on the world's least corrupt country, Denmark, we use a survey experiment to document strong self-selection of more honest individuals into public service. This result differs sharply from existing findings from more corrupt settings. Differences in pro-social versus pecuniary motivation appear central to the observed selection pattern. Dishonest individuals are more pecuniarily motivated and self-select out of public service into higher-paying private sector jobs. Accordingly, we find that increasing public sector wages would attract more dishonest candidates to public service in Denmark.

Suggested Citation

  • Sebastian Barfort & Nikolaj A. Harmon & Frederik Hjorth & Asmus Leth Olsen, 2019. "Sustaining Honesty in Public Service: The Role of Selection," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 96-123, November.
    • Handle: RePEc:aea:aejpol:v:11:y:2019:i:4:p:96-123
    Note: DOI: 10.1257/pol.20170688
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    References listed on IDEAS

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    1. Rema Hanna & Shing-Yi Wang, 2017. "Dishonesty and Selection into Public Service: Evidence from India," American Economic Journal: Economic Policy, American Economic Association, vol. 9(3), pages 262-290, August.
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    Cited by:

    1. Rustagi, Devesh & Kroell, Markus, 2022. "Measuring honesty and explaining adulteration in naturally occurring markets," Journal of Development Economics, Elsevier, vol. 156(C).
    2. Le Maux, Benoît & Necker, Sarah, 2023. "Honesty nudges: Effect varies with content but not with timing," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 433-456.
    3. Brassiolo, Pablo & Estrada, Ricardo & Fajardo, Gustavo & Vargas, Juan, 2021. "Self-Selection into corruption: Evidence from the lab," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 799-812.
    4. Federico Ceschel & Alessandro Hinna & Fabian Homberg, 2022. "Public Sector Strategies in Curbing Corruption: A Review of the Literature," Public Organization Review, Springer, vol. 22(3), pages 571-591, September.
    5. Lang, Matthias & Schudy, Simeon, 2023. "(Dis)honesty and the value of transparency for campaign promises," European Economic Review, Elsevier, vol. 159(C).
    6. Demirgüç-Kunt, Asli & Lokshin, Michael & Kolchin, Vladimir, 2023. "Effects of public sector wages on corruption: Wage inequality matters," Journal of Comparative Economics, Elsevier, vol. 51(3), pages 941-959.
    7. Bauer, Kevin & Kosfeld, Michael & von Siemens, Ferdinand, 2021. "Incentives, Self-Selection, and Coordination of Motivated Agents for the Production of Social Goods," IZA Discussion Papers 14595, Institute of Labor Economics (IZA).
    8. Stoll, Julius, 2022. "The cost of honesty: Field evidence☆," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 101(C).
    9. Vranka, Marek & Hudík, Marek & Frollová, Nikola & Bahník, Štěpán & Sýkorová, Markéta & Houdek, Petr, 2021. "Honesty of online workers: A field experiment shows no evidence of self-selection of cheaters to a cheating-enabling work environment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 94(C).
    10. Gill, Andrej & Heinz, Matthias & Schumacher, Heiner & Sutter, Matthias, 2020. "Trustworthiness in the Financial Industry," IZA Discussion Papers 13583, Institute of Labor Economics (IZA).
    11. Caliari, Daniele & Soraperra, Ivan, 2023. "Planning to cheat: Temptation and self-control," Discussion Papers, Research Unit: Market Behavior SP II 2023-205, WZB Berlin Social Science Center.
    12. Andrej Gill & Matthias Heinz & Heiner Schumacher & Matthias Sutter, 2020. "Trustworthiness in the financial industry," ECONtribute Discussion Papers Series 022, University of Bonn and University of Cologne, Germany.
    13. Anna Abalkina & Alexander Libman, 2020. "The real costs of plagiarism: Russian governors, plagiarized PhD theses, and infrastructure in Russian regions," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 2793-2820, December.
    14. Ulrich Thy Jensen, 2020. "Is self-reported social distancing susceptible to social desirability bias? Using the crosswise model to elicit sensitive behaviors," Journal of Behavioral Public Administration, Center for Experimental and Behavioral Public Administration, vol. 3(2).
    15. Petr Houdek & Štěpán Bahník & Marek Hudík & Marek Vranka, 2021. "Selection effects on dishonest behavior," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 16(2), pages 238-266, March.
    16. Fernando Saltiel & Cody Tuttle, 2023. "Business Cycles and Police Hires," Working Papers 288, Red Nacional de Investigadores en Economía (RedNIE).
    17. repec:cup:judgdm:v:16:y:2021:i:2:p:238-266 is not listed on IDEAS
    18. Andrej Gill & Matthias Heinz & Heiner Schumacher & Matthias Sutter, 2023. "Social Preferences of Young Professionals and the Financial Industry," Management Science, INFORMS, vol. 69(7), pages 3905-3919, July.
    19. Anna Laura Baraldi & Giovanni Immordino & Erasmo Papagni & Marco Stimolo, 2023. "An Unintended Consequence of Gender Balance Laws: Mafia Fuels Political Violence," CSEF Working Papers 693, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.

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    More about this item

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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