2021
DOI: 10.1016/j.red.2020.07.006
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Jumping the queue: Nepotism and public-sector pay

Abstract: We set up a model with search and matching frictions to understand the effects of employment and wage policies, as well as nepotism in hiring in the public sector, on unemployment and rent seeking. Conditional on inefficiently high public-sector wages, more nepotism in publicsector hiring lowers the unemployment rate because it limits the size of queues for public-sector jobs. Public-sector wage and employment policies impose an endogenous constraint on the number of workers the government can hire through con… Show more

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Cited by 13 publications
(7 citation statements)
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“…However, relatively little is known about the determinants of incursions of familial networks in political and public administration institutions. We only know that nepotism is more prevalent when public-sector wages are set above an optimal level (Chassamboulli and Gomes 2019) and recruitment decisions are placed in the hands of individuals rather than, say, hiring committees. For example, research by Geys (2017) demonstrates that electorates prioritize meritocracy over belonging to political dynasties, while politicians tend to prefer family memberseven if they are less qualifiedwhen making hiring decisions.…”
Section: Determinants Of Nepotism and Overstaffingmentioning
confidence: 99%
See 2 more Smart Citations
“…However, relatively little is known about the determinants of incursions of familial networks in political and public administration institutions. We only know that nepotism is more prevalent when public-sector wages are set above an optimal level (Chassamboulli and Gomes 2019) and recruitment decisions are placed in the hands of individuals rather than, say, hiring committees. For example, research by Geys (2017) demonstrates that electorates prioritize meritocracy over belonging to political dynasties, while politicians tend to prefer family memberseven if they are less qualifiedwhen making hiring decisions.…”
Section: Determinants Of Nepotism and Overstaffingmentioning
confidence: 99%
“…2. Researchers have also explored nepotism using surveys (Scoppa 2009;Wang 2013;Chassamboulli and Gomes 2019), publicly provided data (Kauder and Potrafke 2015) and simulations (Kuznar and Frederick 2007). 3.…”
Section: Notesmentioning
confidence: 99%
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“…Gomes (2015) emphasizes the role of public-sector wages in achieving the efficient allocation, while Afonso and Gomes (2014) highlight the interactions between private and public wages. Chassamboulli and Gomes (2021) study the role of nepotism in public sector hiring. In a model with workers heterogeneous in ability, Geromichalos and Kospentaris (2022) study how workers' selection into the public sector affects macroeconomic aggregates.…”
Section: Introductionmentioning
confidence: 99%
“…Regrettably, there are ample reports of corruption in public procurement in both developed and developing countries [15], [16]. At the same time, corruption, mainly in the form of nepotism, is a recognized problem in the public sector, affecting public procurement and personnel recruitment [17].…”
Section: Introductionmentioning
confidence: 99%