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Campaign Connections

Author

Listed:
  • Samuel Bazzi
  • Claudio Labanca

Abstract

This paper explores the labor market returns to working for a victorious political campaign. Using unique administrative data from Brazil, we track the earnings and employment of campaign workers before and after close elections spanning nearly 20 years. We identify sizable returns to working for a winning campaign, especially in areas with a large informal sector and for workers connected to newly elected challengers. The returns are concentrated in the public sector, where connected hires are relatively more qualified. Our results suggest that campaign connections facilitate the hiring of capable but inexperienced workers in the public sector through relational contracting.

Suggested Citation

  • Samuel Bazzi & Claudio Labanca, 2023. "Campaign Connections," NBER Working Papers 31283, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31283
    Note: DEV LS PE POL
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    References listed on IDEAS

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    1. Brollo, Fernanda & Forquesato, Pedro & Gozzi, Juan Carlos, 2017. "To the Victor Belongs the Spoils? Party Membership and Public Sector Employment in Brazil," Economic Research Papers 269088, University of Warwick - Department of Economics.
    2. Nikolaj Broberg & Vincent Pons & Clemence Tricaud, 2022. "Spending Limits, Public Funding, and Election Outcomes," NBER Working Papers 29805, National Bureau of Economic Research, Inc.
    3. Matias D. Cattaneo & Michael Jansson & Xinwei Ma, 2020. "Simple Local Polynomial Density Estimators," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 115(531), pages 1449-1455, July.
    4. Gabriel Ulyssea, 2018. "Firms, Informality, and Development: Theory and Evidence from Brazil," American Economic Review, American Economic Association, vol. 108(8), pages 2015-2047, August.
    5. Vincent Pons, 2018. "Will a Five-Minute Discussion Change Your Mind? A Countrywide Experiment on Voter Choice in France," American Economic Review, American Economic Association, vol. 108(6), pages 1322-1363, June.
    6. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    7. Mitra Akhtari & Diana Moreira & Laura Trucco, 2022. "Political Turnover, Bureaucratic Turnover, and the Quality of Public Services," American Economic Review, American Economic Association, vol. 112(2), pages 442-493, February.
    8. Barbosa, Klenio & Ferreira, Fernando, 2023. "Occupy government: Democracy and the dynamics of personnel decisions and public finances," Journal of Public Economics, Elsevier, vol. 221(C).
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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General

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