15:00 - 16:40
P4
Room:
Room: Club B
Panel Session 4
Hector Bahamonde - Electoral Risk and Vote Buying, Introducing Prospect Theory in the Experimental Study of Clientelism
Tinghua Yu - Political Competition and Bureaucratic Quality
Anderson Frey - When do Parties Recruit Bureaucrats? Evidence from Brazil
Tiago Peterlevitz - Patronage Contracting
Olga Gasparyan - Local Resource Allocation Choices: Evidence from Topic Models of Russian P
Patronage Contracting
P4-4
Presented by: Tiago Peterlevitz
Tiago Peterlevitz
Yale University
Outsourcing public services to private providers is heralded for increasing government efficiency. Yet, outsourcing also offers opportunities to circumvent employment regulations in the public sector. The praised flexibility private contractors have to hire employees can also be used to hire political supporters. I call the use of outsourcing for mobilization purposes patronage contracting. Exploiting close-elections regression discontinuities across Brazilian municipalities, I show that opportunistic mayors who engage in clientelistic practices outsource not only service delivery but also patronage jobs. Moreover, I demonstrate that this effect is driven by municipalities where mayors are pressured by stronger political machines. Pre-registered survey experiments with mayoral candidates confirm these findings. This study presents a cautionary tale against the common assertion that outsourced services provide fewer opportunities for malfeasance: the private sector delivery of public services does not necessarily isolate service provision—and the jobs associated with it—from political capture.