NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Klenio Barbosa

NBER home page: http://kleniobarbosa.wordpress.com
Insper Institute of Education and Research
Rua Quata 300, Vila Olimpia
Sao Paulo, SP 04546-042
Brazil
Tel: +55.11.4504.2694

E-Mail: kleniosb@insper.edu.br
Institutional Affiliation: Insper Institute of Education and Research

NBER Working Papers and Publications

January 2019Occupy Government: Democracy and the Dynamics of Personnel Decisions and Public Finances
with Fernando V. Ferreira: w25501
We study the causes and consequences of patronage in Brazilian cities since the country’s re-democratization. We test key mechanisms – fiscal rules, accountability, political ideology, and rent-seeking – and estimate the consequences of patronage for public finances. Our data consist of the universe of public sector employees merged with their party affiliations, and a dynamic regression discontinuity design is applied to disentangle patronage from the growing political participation. The short-term patronage effect is large, with winning political coalitions increasing their shares of public sector workers and wages by 4 and 6 percentage points, respectively, during a mayoral term. Part of this effect lasts longer than a decade, with winning coalitions also occupying civil servant job...
 
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