Bureaucracy intermediaries, corruption and red tape

Intermediaries helping individuals and firms with the government bureaucracy are common in developing countries. Although such bureaucracy intermediaries are, anecdotally, linked with corruption and welfare losses, few formal analyses exist. In our model, a government license can benefit individuals. We study individuals' net gain when acquiring the license through the regular bureaucratic procedure, through bribing or through intermediaries. For a given procedure, individuals using intermediaries are better off than if intermediaries and corruption had not existed. Intermediaries "grease the wheels". We then study incentives of corrupt bureaucrats to create red tape. When free to choose levels of red tape, bureaucrats implement more red tape and individuals are unambiguously worse off in a setting with intermediaries than with "direct" corruption only. Intermediaries can thus improve access to the bureaucracy, but also strengthen incentives to create red tape - a potential explanation why license procedures tend to be long in developing countries.Bureaucracy; Corruption; Intermediaries; Red tape

Bureaucracy Intermediaries, Corruption and Red Tape

Intermediaries helping individuals and rms with the government bureaucracy are common in developing countries. Although such bureaucracy intermediaries are, anecdotally,linked with corruption and welfare losses, few formal analyses exist. In our model, a government license can benet individuals. We study individuals net gain when acquiring the license through the regular procedure, through bribing or through intermediaries. For a given procedure, individuals using intermediaries are better offthan if intermediaries and corruption had not existed. Intermediaries grease the wheels. We then study incentives of corrupt bureaucrats to create red tape. When free to choose levels of red tape, bureaucrats implement more red tape and individuals are unambiguously worse off in a setting with intermediaries than with direct corruption only. Intermediaries can thus improve access to the bureaucracy, but also strengthen incentives to create red tape - a potential explanation ! why license procedures tend to be long in developing countries.Bureaucracy, Corruption, Intermediaries, Red tape

Income support systems, labour supply incentives and employment – some cross-country evidence

This paper summarizes a set of expert reports commissioned by the IFAU. The expert reports cover Estonia, Germany, Italy, the Netherlands, Sweden, and the United Kingdom. These countries represent range of welfare states, both in terms of scope and design. And in each country there are interesting experiences from which other countries may learn. The overall objective is to identify policy tools that help generate sustained increases in employment in the long run. Therefore, we focus on policies that improve the incentives for labour force participation and reduce the barriers to participation.Labour force participation; employment; income support; long-run sustainability

Consumer Litigation Funding: Just Another Form of Payday Lending?

1-methyl-4-phenyl-1,2,3,6-tetrahydropyridine (MPTP) induces permanent neurochemical and functional deficits. Following the administration of either two or four injections of the dopamine neurotoxin, MPTP, at a dose of 40 mg/kg, C57/BL6 mice were given access to running-wheels (30-min sessions, four times/week, Monday-Thursday) and treatment with the treated yeast, Milmed (R) (four times/week, Monday-Thursday), or simply running-wheel exercise by itself, over ten weeks. It was observed that the combination of physical exercise and Milmed (R) treatment, the MPTP + Exercise + Yeast (MC) group [MPTP + Exercise + Milmed (R) (MC)], restored spontaneous motor activity markedly by test day 10, restored completely subthreshold L-Dopa-induced activity, and dopamine concentration to 76% of control values, in the condition wherein two administrations of MPTP (2 x 40 mg/kg) were given prior to initiation of exercise and/or Milmed (R) treatment. Physical exercise by itself, MPTP + Exercise (MC) group, attenuated these deficits only partially. Administration of MPTP four times (i.e., 40 mg/kg, s.c., once weekly over four weeks for a total of 160 mg/kg, MPTP + Exercise + Yeast (MC) group [MPTP + Exercise + Milmed (R) (SC)] and MPTP + Exercise (SC), induced a lesioning effect that was far too severe for either exercise alone or the exercise + Milmed (R) combination to ameliorate. Nevertheless, these findings indicate a powerful effect of physical exercise reinforced by Milmed (R) treatment in restoring MPTP-induced deficits of motor function and dopamine neurochemistry in mice

Bureaucracy intermediaries, corruption and red tape

Third-party intermediaries that help individuals and firms navigate government bureaucracy are common in developing countries. Although such intermediaries are often, anecdotally, linked with corruption, research suggests that, in some cases, intermediaries actually help improve access to the bureaucracy

LINDA - Longitudinal INdividual DAta for Sweden

This paper presents LINDA - a register-based longitudinal data set for Sweden. LINDA consists of a large panel of individuals, and their household members, which is representative for the population during the period 1960 to 1998. As future years become available, this information will be added to the data set. LINDA also includes a specific sample of immigrants. This sample has the same design and covers the same time period as the population sample. We provide a description of the sources of data, the sampling frame as well as the sampling procedure. Moreover, to illustrate the usefulness and particular features of LINDA, we give the development of some of the key variables in the data set.Longitudinal data; Population sample; Immigrant sample; Sweden

What active labor market policy works in a recession?

This paper discusses the case for expanding active labor market policy in recession. We find that there is reasonable case for relying more heavily on certain kinds of programs. The argument is tied to the varying size of the lock-in effect in boom and recession. If programs with relatively large lock-in effects should ever be used, they should be used in a downturn. The reason is simply that the cost of forgoing search time is lower in recession. We also provide new evidence on the relative effectiveness of different kinds of programs over the business cycle. In particular we compare an on-the-job training scheme with (traditional) labor market training. We find that labor market training is relatively more effective in recession. This result is consistent with our priors since labor market training features relative large lock-in effects.Active labor market policy; business cycle; unemployment

Ethnic enclaves and the economic success of immigrants - evidence from a natural experiment

Recent immigrants tend to locate in ethnic "enclaves" within metropolitan areas. The economic consequence of living in such enclaves is still an unresolved issue. We use an immigrant policy initiative in Sweden, when government authorities distributed refugee immigrants across locales in a way that may be considered exogenous. This policy initiative provides a unique natural experiment, which allows us to estimate the causal effect on labor market outcomes of living in enclaves. We find substantive evidence of sorting across locations. When sorting is taken into account, living in enclaves improves labor market outcomes; for instance, the earnings gain associated with a standard deviation increase in ethnic concentration is in the order of four to five percent.Immigration; Enclaves; Labor market outcomes