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Review of Public Personnel Administration, Vol. 13, No. 2, 45-64 (1993)
DOI: 10.1177/0734371X9301300204

The Paradox of Merit Pay in the Public Sector

Persistence of a Problematic Procedure

J. Edward Kellough

Haoran Lu

A growing consensus among administrators and academic researchers is that merit pay based on individual performance has failed in the public sector. At the same time, however, governments continue to express support for the merit pay concept. This article reviews the theoretical foundation and proposed advantages of merit pay systems, then identifies the four most critical problems associated with merit pay practices in the public service.


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