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Corruption, workforce selection and mismatch in the public sector

Sauro Mocetti () and Tommaso Orlando

European Journal of Political Economy, 2019, vol. 60, issue C

Abstract: We examine the impact of corruption on workforce selection and personnel allocation in the public sector. Using Italian data, we find that the selection of public employees in terms of human capital worsens in comparison to that of their private sector counterparts in areas with higher levels of corruption. Moreover, corruption is associated with educational mismatch in the allocation of human resources and, in particular, with an increase in the rate of under-qualification. These results are robust to several alternative indicators and specifications, including IV estimation using past dependence on public spending and the historical relevance of foreign domination as exogenous sources of variation for current corruption.

Keywords: Corruption; Selection; Mismatch; Schooling; Human capital; Public employment (search for similar items in EconPapers)
JEL-codes: D73 H83 J45 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.ejpoleco.2019.07.007

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European Journal of Political Economy is currently edited by J. De Haan, A. L. Hillman and H. W. Ursprung

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