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This qualitative study explores the degree to which the merit-based selection of public managers leads to better public sector performance. Based on the findings from eight case studies in Chile and Peru, the introduction of the merit-based selection of public managers would have engendered a series of improvements in the internal management and practices of organizations─ more so than in institutional outcomes. Other intangible and perceived benefits include the manager’s higher level of legitimacy in, as well as a stronger commitment to, the institution. The study also proposes a future agenda for research.