Meritocracy in Bureaucracy: A Double-Edged Sword

Led by the Trump administration and Elon Musk’s DOGE, Americans are debating once again how our government should hire civil servants, but are we asking the right questions? In this episode, we dive into a compelling new study on the Pendleton Act, one of the most significant bureaucratic reforms in U.S. history, which introduced merit-based civil service exams to combat corruption and incompetence. But did it work?

We speak with economist Santiago Perez about his paper “Civil Service Exams and Organizational Performance: Evidence From The Pendleton Act” and his surprising findings that while the reform did help hire more qualified and stable employees, it didn’t clearly improve government efficiency. Also, what unintended consequences may have emerged, such as manipulation of salary thresholds and persistent power dynamics among political appointees.

So, what can the Pendleton Act teach us about modern bureaucracy, accountability, and fairness? And could reintroducing merit-based exams actually fix today’s polarized and politicized civil service—or make it even worse?