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The Success of the Embedded State in England

Author

Listed:
  • Leander Heldring

    (Northwestern University, Kellogg School of Management and NBER)

  • Davis Kedrosky

    (Northwestern University, Economics)

  • James A. Robinson

    (The University of Chicago, Harris School of Public Policy, Department of Political Science and NBER)

  • Matthias Weigand

    (Harvard University)

Abstract

Many states exhibit high degrees of capacity without the fiscal resources necessary to fund a modern bureaucracy. We argue that they achieve this by exploiting features of the social structure of the societies they govern to motivate individuals to engage in bureaucratic and governance tasks without pay. We develop and illustrate the concept of the “Embedded State†using a unique survey of British urban government from 1835. Since British local authorities had few resources, only two-thirds of positions were paid. We first show that unpaid positions were significantly more productive than paid ones. We then show that unpaid positions conveyed prestige and were ‘stepping stone’ positions, provided different on-the-job incentives, and were taken up by the socio-economic elite. We also show that the successful Embedded State featured patronage and corruption and could not fully motivate unpaid bureaucrats to implement onerous tasks.

Suggested Citation

  • Leander Heldring & Davis Kedrosky & James A. Robinson & Matthias Weigand, 2026. "The Success of the Embedded State in England," Working Papers 2026-60, Becker Friedman Institute for Research In Economics.
  • Handle: RePEc:bfi:wpaper:2026-60
    as

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    File URL: https://repec.bfi.uchicago.edu/RePEc/pdfs/BFI_WP_2026-60.pdf
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    References listed on IDEAS

    as
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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
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-

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