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Title: Curbing Cream-Skimming: Evidence on Enrolment Incentives

Author(s): Pascal Courty, Do Han Kim and Gerald Marschke

Publication Date: January 2009

Keyword(s): bureaucrat behavior, cream-skimming, enrolment incentives, Performance measurement and public organizations

Programme Area(s): Labour Economics

Abstract: Using data from a large, U.S. federal job training program, we investigate whether enrolment incentives that exogenously vary the ?shadow prices? for serving different demographic subgroups of clients influence case workers? intake decisions. We show that case workers enroll more clients from subgroups whose shadow prices increase but select at the margin weaker-performing members from those subgroups. We conclude that enrolment incentives curb cream-skimming across subgroups leaving a residual potential for cream-skimming within a subgroup.

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Bibliographic Reference

Courty, P, Kim, D and Marschke, G. 2009. 'Curbing Cream-Skimming: Evidence on Enrolment Incentives'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=7121