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worldbank/Governance in Action_ A Conversation on The Bureaucracy Lab
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Over the next 10–15 years, more than 1 billion young people in developing countries will reach working age. If we don’t act now, there won’t be enough jobs for all of them. From delivering quality education and healthcare to building roads, maintaining sound public finances, and creating an environment where businesses can grow and thrive, public sector workers play a critical role in a country’s development outcomes and creating. Creating more and better jobs requires effective governments.

The World Bank Group’s Public Workforce Performance and Prosperity global report brings novel data analytics to the study of public administration and focuses on how to make the world’s 400 million public sector workers more effective in performing their core government functions. The findings of the report were presented at a special event organized by the World Bank Group Institute for Economic Development, in partnership with the Research Center for European Analytics and Policy at LUISS University.

Arturo Herrera, Global Director for Governance at the World Bank Group, and Zahid Hasnain, Lead Governance Specialist and lead author of the report, sat down to discuss the report’s findings. Read the interview transcript and watch the full discussion below.

Editor’s note: The transcription has been edited for clarity and length.

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Arturo Herrera: Tell us about some of the report's main findings.

What are the headline numbers on the global public sector workforce?

Zahid Hasnain: Thank you, Arturo. This report draws on more than a decade of data collection through the Bureaucracy Lab, a collaboration between the World Bank Group's Governance and Development Economics teams.

It brings together two main data sources. The first is the Worldwide Bureaucracy Indicators, which draw on labor force surveys covering more than 70 million individual observations across countries, providing data on public sector employment, wages, and workforce characteristics.

The second consists of surveys of public sector employees that examine the human resource management practices that drive productivity. We've conducted these surveys in 30 countries, adding two or three more each year, and they now include roughly 200,000 individual observations.

Together, these datasets provide an unprecedented picture of the global public workforce. One headline finding is that there are approximately 400 million public sector employees worldwide. Another is that, on average, the public sector offers a 20 percent wage premium compared with the private sector.

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Arturo Herrera: Let me stop you there because that's somewhat counterintuitive.

People often assume the private sector pays better than government. Your research finds the opposite, correct?

Zahid Hasnain: That's right. One of our central findings is that developing countries are generally understaffed, but not necessarily underpaid — which runs counter to conventional wisdom.

If you look at staffing levels on a per capita basis, developing countries have only about one-quarter as many public employees as high-income countries. As countries develop, they tend to expand their public workforce to deliver essential services more effectively.

At the same time, after controlling for education, age, and other observable characteristics, we find that the average public sector employee earns about 20 percent more than a comparable private sector worker. That estimate doesn't even include the value of benefits.

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One of our central findings is that developing countries are generally understaffed, but not necessarily underpaid — which runs counter to conventional wisdom."
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Arturo Herrera: The report paints a comprehensive picture of who works in government. Beyond workforce size and wages, it also finds that while gender pay gaps still exist, they're generally smaller in the public sector than in the private sector.

But the report goes beyond describing the workforce. It also examines what helps public employees perform better. Tell us about those findings.

Zahid Hasnain: Over the past decade, research across labor economics, public economics, public administration, and political science has converged around four key drivers of public sector performance: staffing, compensation and incentives, management practices, and digital technologies. Those four pillars form the conceptual framework for this report.

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Take management, for example. A growing body of evidence shows that merit-based recruitment—using competitive exams and behavioral interviews to assess public service motivation—leads to better outcomes, from improved student learning to stronger health services.

Our data show considerable variation in how countries use merit-based recruitment. Even more striking, however, is the variation within countries. In countries such as Ethiopia or Nigeria, some ministries rely heavily on meritocratic recruitment while others do not.

Reducing those disparities and expanding merit-based hiring across government would strengthen the quality of the public workforce and ultimately improve public service delivery. It's also a very practical reform that can be supported through World Bank Group operations.

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For example, one survey in Malaysia revealed a substantial mismatch between the training civil servants wanted, particularly in AI and cybersecurity, and the training that was actually available.

The report points to three priorities: grounding digital training in regular needs assessments, providing foundational digital skills for all civil servants, and developing advanced digital specialists who can support innovation across government.

In Cristian's words, the experience "has been much easier for me because I grew up in the countryside, and the connection and familiarity with the people generates a lot of trust when entering the territory."

Cristian started as a local facilitator, then was promoted to technical support professional, and is now the lead professional in the restoration process in the Charras Boquerón area in the department of Guaviare. For Cristian, "It has been a wonderful and enriching experience, as it has allowed me to gain experience, improve my professional skills and be able to contribute both to the objectives and goals of the project and to the restoration."

Under this mechanism, the technical and administrative capacity remains in the territory. The project is enriched by experts who have knowledge of the local context and enjoy the trust of the communities. In total since 2016, 2,822 people have been hired to join the project team. The modalities of recruitment and remuneration are adjusted to the nature of each role and responsibility, but thanks to the project, the supply and capacity in the local labor market has increased, as well as income sources for the communities.

This strategy has also expanded opportunities for women, recognizing their distinct roles in biodiversity conservation. Of the total number of people employed, almost a third have been women. They have become an example for others in the region, as mentioned by Maria de los Ángeles Cadena Tovar, local facilitator for the implementation of the management plan of the Miraflores Picachos Park. "This project has allowed women in the area to also feel supported because before it was mostly men the first to be hired for field work with long walks. Right now, seeing that women are hired for these tasks and that we can do them, gives more personal security to women in the area. They realize that nothing is impossible, that everything in life can be done."

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Arturo Herrera: Let me ask one final question. The report provides a wealth of new evidence that will be valuable for researchers. But beyond its analytical contribution, perhaps even more important is how governments can use these findings to improve performance.

Can you share some examples of how governments and the World Bank Group are already putting this evidence into practice?

Zahid Hasnain: One area that will become increasingly important is wage bill sustainability, particularly as many client countries face debt distress. The report offers several practical lessons.

  • First, governments should focus less on reducing employment and more on pay reform. Many low-income countries are already understaffed, and public sector employment provides important economic opportunities, especially for women. Large-scale staffing cuts can therefore have significant social and economic consequences. Instead, governments should address structural weaknesses in pay systems, which often create inequities and reduce motivation. Reforming compensation can improve both fiscal sustainability and workforce performance.
  • A second priority is what we call human resource management for domestic revenue mobilization. Strengthening the workforce in revenue authorities can help countries raise more revenue and ease fiscal pressures. Revenue agencies are labor-intensive organizations, yet many remain understaffed—particularly when it comes to specialized technical skills.
  • A third priority is expanding merit-based recruitment, including greater use of competitive examinations and transparent hiring processes.
  • Finally, governments need to invest in digital skills—providing foundational training for all civil servants while also building specialized digital expertise across government to help harness emerging technologies such as AI.

Arturo Herrera: Zahid, thank you very much. I hope our audience has enjoyed this conversation, and I encourage everyone to take a look at the report.

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