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Financial Incentives, Efforts, and Performances in the Health Sector: Experimental Evidence from the Democratic Republic of Congo

Huillery, Elise; Seban, Juliette (2019), Financial Incentives, Efforts, and Performances in the Health Sector: Experimental Evidence from the Democratic Republic of Congo, Economic Development and Cultural Change. 10.1086/703235

Type
Article accepté pour publication ou publié
Date
2019
Journal name
Economic Development and Cultural Change
Publisher
University of Chicago Press
Publication identifier
10.1086/703235
Metadata
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Author(s)
Huillery, Elise
Laboratoire d'Economie de Dauphine [LEDa]
Seban, Juliette
Abstract (EN)
Financial incentives for service providers are increasingly used in developing countries as atool to maximize the effort and output of public providers. Using a field experiment in theDRC, we evaluate the impact of a fee-for-service mechanism aimed to increase health serviceutilization. We find that, relative to fixed payments, the fee-for-service mechanism slightlydecreased service utilization. We show that these detrimental effects of incentives do notresult from a diminution in workers' efforts, fraud, or switching away from non-incentivizedactions. But workers’ intrinsic motivation decreased and their efforts were evidentlymisplaced, showing that incentivized workers are not always more productive because theymay not understand how to perform.
Subjects / Keywords
H51, I18, 012; Health; Democratic Republic of Congo; Africa
JEL
O12 - Microeconomic Analyses of Economic Development
I18 - Government Policy; Regulation; Public Health
H51 - Government Expenditures and Health

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