Do Political Connections Reduce Job Creation? Evidence from Lebanon

Ishac Diwan () and Jamal Haidar ()
Additional contact information
Jamal Haidar: Harvard University

No 1054, Working Papers from Economic Research Forum

Abstract: Using firm-level census data, we determine how politically-connected firms (PCFs) reduce job creation in Lebanon. After observing that large firms account for the bulk of net job creation, we find that PCFs are larger and create more jobs, but are also less productive, than non-PCFs in their sectors. On a net basis, at the sector-level, each additional PCF reduces jobs created by 7.2% and jobs created by non-PCFs by 11.3%. These findings support the notion that politically-connected firms are used for clientelistic purposes in Lebanon, exchanging privileges for jobs that benefit their patrons’ supporters.

Pages: 31
Date: 2016-17-10, Revised 2016
New Economics Papers: this item is included in nep-ara and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published by The Economic Research Forum (ERF)

Downloads: (external link)
http://erf.org.eg/wp-content/uploads/2016/10/1054.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://erf.org.eg/wp-content/uploads/2016/10/1054.pdf [301 Moved Permanently]--> https://erf.org.eg/wp-content/uploads/2016/10/1054.pdf)
http://bit.ly/2eg5NlS

Related works:
Working Paper: Do Political Connections Reduce Job Creation? Evidence from Lebanon (2016)
Working Paper: Do Political Connections Reduce Job Creation? Evidence from Lebanon
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:erg:wpaper:1054

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Namees Nabeel ().