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State capacity, informality and clientelism

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  • Giuliana Pardelli
  • Julieta Peveri

Abstract

Understanding how to tackle clientelism is crucial for enhancing political accountability. While its negative impacts on governance are well-documented, less is known about strategies to disrupt these networks. This paper argues that stricter enforcement of labor regulations can weaken clientelistic practices. Using an instrumental variable approach based on within-municipality changes in proximity to labor offices and state-level variations in labor inspectors in Brazil, we find that enhanced enforcement significantly reduces the electoral success of clientelistic parties and curtails patronage and vote-buying. These outcomes are largely driven by a decline in informal workers, who are more likely to support clientelistic parties.

Suggested Citation

  • Giuliana Pardelli & Julieta Peveri, 2025. "State capacity, informality and clientelism," Discussion Papers 2025-05, Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP).
  • Handle: RePEc:not:notnic:2025-05
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    File URL: https://www.nottingham.ac.uk/research/groups/nicep/documents/working-papers/2025/2025-05.pdf
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