PERFORMANCE AND PAY IN THE PUBLIC-SECTOR - THE CASE OF THE LOCAL-TAX ASSESSOR

Because it is unclear theoretically, if the compensation of public emp loyees is based on performance, this study empirically examines the va rious factors underlying tar assessor pay. As neoclassical theory sugg ests, performance, as measured by assessment uniformity, is found to p ositively affect tar assessor pay. In particular a 10% increase in ass essment uniformity is shown to result in a 1.7% - 2.3% increase in tax assessor pay, ceteris paribus.