Public employees in many developing economies earn much higher wages than similar private-sector workers. These wage premia may reflect an efficient return to effort or unobserved skills, or an inefficient rent causing labor misallocation. To distinguish these explanations, we exploit the Kenyan...

In many developing countries (and beyond), public sector workers are not just simply implementers of policies designed by the politicians in charge of supervising them-so called agents and principals, respectively. Public sector workers can have the power to influence whether politicians are...