General Trends and Causes of High Compensation of Government Managers in the OECD Countries

Government managers play a central role in the public administration of countries to support their overall efficiency. The compensation of central government senior managers has received considerable attention in recent years since it has risen in many countries. The public, the media and academia see government senior managers as being overpaid, with salaries increasing in a disproportionate and inequitable way. The literature has analyzed some possible determinants of this socio-administrative issue. However, the political and institutional factors affecting public managers’ compensation are still largely unknown. This study shows that the average compensation of central government senior managers in some OECD countries seems to be positively associated with the average salary of members of parliament (MPs). Furthermore, high compensation of public managers seems to be more frequent in countries with low freedom of expression, of association and of the media, as well as low quality of contract enforcement, property rights and control of corruption. These results may provide fruitful insights into the possible causes of this relation, to support reforms and best practices which can improve the efficiency of the public administration in modern economies.