Matching in the Civil Service: A Market Design Approach to Public Administration and Development

Abstract

Using a matching theory perspective, I analyze the design and impact of Indian Civil Service state assignment mechanisms allocating elite civil servants to different parts of the country. I find that a change in the matching mechanism in 2008 has systematically skewed assignments by assigning relatively poor-quality bureaucrats to disadvantaged states: regions with external foreign conflict, states with internal political strife, and newly-formed states. I highlight the scope for market design and the Preference-versus-Performance Trade-off governments face in designing allocation procedures: accommodating individuals' preferences to keep bureaucrats content, can come at a loss for the organization's performance as a whole.