Reportgreen2002

The Performance of Performance Standards

James J. Heckman · Carolyn J. Heinrich · Jeffrey S. Smith

38 citations0/0 files storedNational Bureau of Economic Research

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Public Policy and Administration Research Local Government Finance and Decentralization Accounting and Organizational Management

Abstract

This paper examines the performance of the JTPA performance system, a widely emulated model for inducing efficiency in government organizations.We present a model of how performance incentives may distort bureaucratic decisions.We define cream skimming within the model.Two major empirical findings are (a) that the short run measures used to monitor performance are weakly, and sometimes perversely, related to long run impacts and (b) that the efficiency gains or losses from cream skimming are small.We find evidence that centers respond to performance standards.

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References

1990Bureaucracy: what government agencies do and why they do it 1999The Economics and Econometrics of Active Labor Market Programs 2002Incentives and Organizations in the Public Sector: An Interpretative Review 1997Making The Most Out Of Programme Evaluations and Social Experiments: Accounting For Heterogeneity in Programme Impacts 1998Explaining Rising Wage Inequality: Explorations with a Dynamic General Equilibrium Model of Labor Earnings with Heterogeneous Agents 1997The Benefits and Costs of JTPA Title II-A Programs: Key Findings from the National Job Training Partnership Act Study 1996What Do Bureaucrats Do? The Effects of Performance Standards and Bureaucratic Preferences on Acceptance into the JTPA Program 1997Performance Incentives in the Public Sector: Evidence From the Job Training Partnership Act

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2018Does Disclosure of Performance Information Influence Street‐level Bureaucrats’ Enforcement Style?2011Performance Standards and the Potential to Improve Government Performance 2017Managing Street-Level Arbitrariness: The Evidence Base for Public Sector Quality Improvement 2024Impact of low‐performance signals on employee fraud in public organizations: Evidence from a pay‐for‐performance context

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