Monday 27 January 2020

The impact of CEOs in the public sector: Evidence from the English NHS

a column by Katharina Janke, Carol Propper and Raffaella Sadun for VOX: CEPR’s Policy Portal

Studies have shown that in the private sector, top managers and CEOs can make a difference in the performance of their organisations and have a ‘style’ that is portable across firms.

This column uses the setting of hospitals in the English National Health Service to examine whether CEOs can make a difference in large and complex public sector organisations. The findings suggest that the CEOs of large public hospitals do not have a significant impact on performance, casting doubt on the ‘turnaround CEO’ approach to management in the public sector.

Figure 1 Mean annual pay of NHS staff by job type (CPI adjusted)

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Labels:
NHS, public_sector, CEOs, turnaround_CEO, hospital_management,


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