Corrupt Bureaucrats: The Response of Non-Elected Officials to Electoral Accountability

Michele Valsecchi

No 684, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: Modern state bureaucracies are designed to be insulated from political interference. Successful insulation implies that politicians' electoral incentives do not affect bureaucrats' corruption. I test this prediction by assembling a unique dataset on corruption, promotions and demotions for more than 4 million Indonesian local civil servants. To identify the effect of reelection incentives, I exploit the existence of term limits and a difference-indifference strategy. I find that reelection incentives decrease the corruption behaviour of both top and administrative bureaucrats, which constitutes new evidence of the deep, farreaching effects of politicians' accountability on local civil servants. I explore a mechanism where bureaucrats have career concerns and politicians facing reelection manipulate such concerns by increasing the turnover of top bureaucrats. Consistent with this mechanism, I find that reelection incentives increase demotions of top bureaucrats and promotions of administrative bureaucrats.

Keywords: Corruption; Elections; Bureaucracy (search for similar items in EconPapers)
JEL-codes: D72 D73 H83 K40 O17 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2016-12
New Economics Papers: this item is included in nep-law, nep-pol and nep-sea
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Citations: View citations in EconPapers (1)

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