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Building Political Collusion: Evidence from Procurement Auctions

Coviello, Decio; Gagliarducci, Stefano - Institute for the Study of Labor (IZA) - 2010

. To this purpose, we collect a data set on the Italian municipal governments and all the procurement auctions they … importantly, the winning rebate. Interestingly, we also find that the probability that the same firm is awarded more auctions, or … of favoritism in repeated procurement auctions, where time reveals collusive types, thus increasing the value of illegal …

Persistent link: https://www.econbiz.de/10008506079

Bureaucratic Rents and Life Satisfaction

Luechinger, Simon; Meier, Stephan; Stutzer, Alois - Institute for the Study of Labor (IZA) - 2006

The monopoly position of the public bureaucracy in providing public services allows government employees to acquire rents. Those rents can involve higher wages, monetary and non-monetary fringe benefits (e.g. pensions and staffing), and/or bribes. We propose a direct measure to capture the total...

Persistent link: https://www.econbiz.de/10005700927

Can Job Competition Prevent Hold-Ups?

Jansen, Marcel - Institute for the Study of Labor (IZA) - 2004

We consider an economy in which firms need to invest in capital before they can advertise a job, while applicants may have to compete for jobs. Our aim is to investigate how this competition affects the investment decisions of firms. Our first result shows that the economy always generates the...

Persistent link: https://www.econbiz.de/10005703500

To Draft or Not to Draft? Efficiency, Generational Incidence, and Political Economy of Military Conscription

Poutvaara, Panu; Wagener, Andreas - Institute for the Study of Labor (IZA) - 2005

We study the efficiency and distributional consequences of establishing and abolishing the draft in a dynamic model with overlapping generations, taking into account endogenous human capital formation as well as government budget constraints. The introduction of the draft initially benefits the...

Persistent link: https://www.econbiz.de/10005703635

Military Draft and Economic Growth in OECD Countries

Keller, Katarina; Poutvaara, Panu; Wagener, Andreas - Institute for the Study of Labor (IZA) - 2006

Economic theory predicts that military conscription is associated with static inefficiencies as well as with dynamic distortions of the accumulation of human and physical capital. Relative to an economy with an all-volunteer force, output levels and growth rates should be lower in countries that...

Persistent link: https://www.econbiz.de/10005822977

Generating Legitimacy for Labor Market and Welfare State Reforms: The Role of Policy Advice in Germany, the Netherlands, and Sweden

Eichhorst, Werner; Wintermann, Ole - Institute for the Study of Labor (IZA) - 2005

Policy advice can help political actors design and implement institutional reforms through the generation of political and substantial legitimacy. This article clarifies the institutional preconditions of effective supply and transfer of policy advice with particular respect to the field of...

Persistent link: https://www.econbiz.de/10005703504

Are Public Sector Workers Different? Cross-European Evidence from Elderly Workers and Retirees

Tonin, Mirco; Vlassopoulos, Michael - Institute for the Study of Labor (IZA) - 2014

The public sector employs a large share of the labor force to execute important functions (e.g. regulation and public good provision) in an environment beset by severe agency problems. Attracting workers who are motivated to serve the public interest is important to mitigate these problems. We...

Persistent link: https://www.econbiz.de/10010781556

Managerial Talent, Motivation, and Self-Selection into Public Management

Delfgaauw, Josse; Dur, Robert - Institute for the Study of Labor (IZA) - 2010

The quality of public management is a recurrent concern in many countries. Calls to attract the economy’s best and brightest managers to the public sector abound. This paper studies self-selection into managerial positions in the public and private sector, using a model of a perfectly...

Persistent link: https://www.econbiz.de/10008568310

The Politicians' Wage Gap: Insights from German Members of Parliament

Peichl, Andreas; Pestel, Nico; Siegloch, Sebastian - Institute for the Study of Labor (IZA) - 2011

Using a unique dataset of German members of parliament with information on total earnings including outside income, this paper analyzes the politicians’ wage gap (PWG). After controlling for observable characteristics as well as accounting for selection into politics, we find a positive PWG...

Persistent link: https://www.econbiz.de/10008839286

Legal Corruption, Politically Connected Corporate Governance and Firm Performance

Domadenik, Polona; Prašnikar, Janez; Svejnar, Jan - Institute for the Study of Labor (IZA) - 2014

In this paper we present and test a theory of how political corruption, found in many transition and emerging market economies, affects corporate governance and productive efficiency of firms. Our model predicts that underdeveloped democratic institutions that do not punish political corruption...

Persistent link: https://www.econbiz.de/10010884312