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

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  • Englmaier, Florian

    (University of Munich)

  • Muehlheusser, Gerd

    (University of Hamburg)

  • Roider, Andreas

    (University of Regensburg)

  • Wallmeier, Niklas

    (University of Hamburg)

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.

Suggested Citation

  • Englmaier, Florian & Muehlheusser, Gerd & Roider, Andreas & Wallmeier, Niklas, 2022. "Management and Performance in the Public Sector: Evidence from German Municipalities," IZA Discussion Papers 15676, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15676
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    More about this item

    Keywords

    management practices; public sector organizations; local government; municipal performance; World Management Survey (WMS);
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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