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Audits and Government Hiring Practices

Author

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  • Maximiliano Lauletta
  • Martín A. Rossi
  • Christian A. Ruzzier

Abstract

We exploit the random assignment of Brazilian municipalities to an audit programme to explore the link between audits and government hiring practices. We find that audited municipalities employ less labour to provide a given level of public services, and change the way in which they screen their employees—relying less on discretion and more on merit. Given that audits reduce corruption in the activities under scrutiny, our results suggest that different types of corruption can be complements rather than substitutes.

Suggested Citation

  • Maximiliano Lauletta & Martín A. Rossi & Christian A. Ruzzier, 2022. "Audits and Government Hiring Practices," Economica, London School of Economics and Political Science, vol. 89(353), pages 214-227, January.
    • Handle: RePEc:bla:econom:v:89:y:2022:i:353:p:214-227
    DOI: 10.1111/ecca.12395
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    More about this item

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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