To estimate demand for labor, we use a combination of detailed employment data and the outcomes of procurement auctions …, and compare the employment of the winner of an auction with the employment of the second ranked firm (i.e. the runner …-up firm). Assuming similar ex-ante winning probabilities for both firms, we may view winning an auction as an exogenous shock …

procurement outcomes in a large database for public works in Italy. Works with a value above a given threshold have to be awarded … through an open auction. Works below this threshold can be more easily awarded through a restricted auction, where the buyer … that the same firm wins repeatedly, and it does not deteriorate (and may improve) the procurement outcomes we observe. The …

the only means by which the integrity of such procurement processes can be undermined; individuals with purchasing …