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Audits and Government Hiring Practices

Author

Listed:
  • Maximiliano Lauletta

    (Department of Economics, University of California, Berkeley)

  • Martín Rossi

    (Department of Economics, Universidad de San Andres)

  • Christian Ruzzier

    (Department of Economics, Universidad de San Andres)

Abstract

We exploit the random assignment of Brazilian municipalities to an audit program 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 Rossi & Christian Ruzzier, 2020. "Audits and Government Hiring Practices," Working Papers 141, Universidad de San Andres, Departamento de Economia, revised Sep 2021.
    • Handle: RePEc:sad:wpaper:141
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    File URL: https://webacademicos.udesa.edu.ar/pub/econ/doc141.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    bureaucracy; corruption; audits; efficiency; public sector employment;
    All these keywords.

    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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