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Careers, Connections, and Corruption Risks: Investigating the Impact of Bureaucratic Meritocracy on Public Procurement Processes


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Authors

Charron, Nicholas 
Dahlstrom, Carl 
Fazekas, Mihaly 
Lapuente, Victor 

Abstract

Why do officials in some countries favor entrenched contractors, while others assign public contracts more impartially? This article emphasizes the important interplay between politics and bureaucracy. It suggests that corruption risks are lower when bureaucrats’ careers do not depend on political connections but on their peers. We test this hypothesis with a novel measure of career incentives in the public sector—using a survey of more than 18,000 public sector employees in 212 European regions—and a new objective corruption risk measure including over 1.4 million procurement contracts. Both show a remarkable subnational variation across Europe. The study finds that corruption risks are indeed significantly lower where bureaucrats’ career incentives exclusively follow professional criteria. In substantial terms, moving EU regions so that bureaucrats’ merit and effort would matter as much as in, for example, Baden-Wüttemberg (90th percentile) could lead to a 13–20 billion Euro savings per year.

Description

Keywords

corruption, bureaucracy, Europe, meritocracy, Quality of Government

Journal Title

JOURNAL OF POLITICS

Conference Name

Journal ISSN

0022-3816
1468-2508

Volume Title

79

Publisher

University of Chicago Press
Sponsorship
Funding for this project comes from the Seventh Framework Programme for Research and Development of the European Union, project number 290529. This research project is part of ANTICORRP, (http://anticorrp.eu/ ).