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Campaign Connections

Author

Listed:
  • Bazzi, Samuel

    (University of California, San Diego)

  • Labanca, Claudio

    (Monash University)

Abstract

This paper explores the labor market returns to working on 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 a potential upside to patronage as campaign connections create new pathways to public administration for young, high-ability workers.

Suggested Citation

  • Bazzi, Samuel & Labanca, Claudio, 2023. "Campaign Connections," IZA Discussion Papers 16166, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16166
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    File URL: https://docs.iza.org/dp16166.pdf
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    References listed on IDEAS

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    1. 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.
    2. Fernanda Brollo, & Forquesato, Pedro & Gozzi, Juan Carlos, 2017. "To the Victor Belongs the Spoils? Party Membership and Public Sector Employment in Brazil," The Warwick Economics Research Paper Series (TWERPS) 1144, University of Warwick, Department of Economics.
    3. Nikolaj Broberg & Vincent Pons & Clemence Tricaud, 2022. "Spending Limits, Public Funding, and Election Outcomes," NBER Working Papers 29805, National Bureau of Economic Research, Inc.
    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.
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    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).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    electoral campaigns; labor markets; patronage; political connections;
    All these keywords.

    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
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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