Hostname: page-component-cd9895bd7-p9bg8 Total loading time: 0 Render date: 2024-12-25T08:28:13.837Z Has data issue: false hasContentIssue false

The Price of Probity: Anticorruption and Adverse Selection in the Chinese Bureaucracy

Published online by Cambridge University Press:  22 December 2020

Junyan Jiang*
Affiliation:
Department of Political Science, Columbia University, USA
Zijie Shao
Affiliation:
School of Government and Public Affairs, Communication University of China, Beijing, China
Zhiyuan Zhang
Affiliation:
Department of Government and Public Administration, Chinese University of Hong Kong, Hong Kong SAR, China
*
*Corresponding author. E-mail: [email protected]

Abstract

Fighting corruption is often seen as a crucial step toward building better institutions, but how it affects political selection remains less well understood. This article argues that in systems where corruption functions as an informal incentive for government to attract talent, anticorruption initiatives that curb rent-seeking opportunities may unintentionally weaken both the quality and the representativeness of the bureaucracy. The authors test this argument in China using an original nationwide survey of government officials and an identification strategy that exploits exogenous variations in enforcement levels created by the recent anticorruption campaign. The study finds that intensified enforcement has generated two potentially negative selection effects: a deterrence effect that lowers the average ability of newly recruited bureaucrats, and a compositional effect that discourages the entry of lower-class individuals in favor of those who are affluent and well connected. These findings highlight important hidden human capital costs of corruption elimination in developing countries.

Type
Article
Copyright
Copyright © The Author(s), 2020. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alt, J, Bueno de Mesquita, E and Rose, S (2011) Disentangling accountability and competence in elections: evidence from U.S term limits. Journal of Politics 73(1), 171186.CrossRefGoogle Scholar
Anechiarico, F (1996) The Pursuit of Absolute Integrity: How Corruption Control Makes Government Ineffective. Chicago, IL: University of Chicago Press.Google Scholar
Ang, YY (2016) How China Escaped the Poverty Trap. Ithaca, NY: Cornell University Press.CrossRefGoogle Scholar
Avis, E, Ferraz, C and Finan, F (2018) Do government audits reduce corruption? Estimating the impacts of exposing corrupt politicians. Journal of Political Economy 126(5), 19121964.CrossRefGoogle Scholar
Avis, E et al. (2017) Money and Politics: The Effects of Campaign Spending Limits on Political Competition and Incumbency Advantage. Cambridge, MA: National Bureau of Economic Research.CrossRefGoogle Scholar
Baltrunaite, A et al. (2014) Gender quotas and the quality of politicians. Journal of Public Economics 118, 6274.CrossRefGoogle Scholar
Bayley, DH (1966) The effects of corruption in a developing nation. Western Political Quarterly 19(4), 719732.CrossRefGoogle Scholar
Bell, DA (2015) The China Model: Political Meritocracy and the Limits of Democracy. Princeton, NJ: Princeton University Press.Google Scholar
Besley, T (2005) Political selection. Journal of Economic Perspectives 19(3), 4360.CrossRefGoogle Scholar
Besley, T and McLaren, J (1993) Taxes and bribery: the role of wage incentives. The Economic Journal 103(416), 119141.CrossRefGoogle Scholar
Blanes i Vidal, J, Draca, M and Fons-Rosen, C (2012) Revolving door lobbyists. American Economic Review 102(7), 37313748.CrossRefGoogle Scholar
Bobonis, GJ, Cámara Fuertes, LR and Schwabe, R (2016) Monitoring corruptible politicians. American Economic Review 106(8), 23712405.CrossRefGoogle Scholar
Brown, E and Cloke, J (2004) Neoliberal reform, governance and corruption in the south: assessing the international anti-corruption crusade. Antipode 36(2), 272294.CrossRefGoogle Scholar
Burns, JP (2010) Civil service reform in China: impacts on civil servants’ behavior. China Quarterly 201(201), 5878.CrossRefGoogle Scholar
Cai, H, Fang, H and Xu, LC (2011) Eat, drink, firms, government: an investigation of corruption from the entertainment and travel costs of Chinese firms. The Journal of Law and Economics 54(1), 5578.CrossRefGoogle Scholar
Chan, HS and Ma, J (2011) How are they paid? A study of civil service pay in China. International Review of Administrative Sciences 77(2), 294321.CrossRefGoogle Scholar
Chen, T and Kung, JK (2018) Busting the ‘princelings’: the campaign against corruption in China's primary land market. Quarterly Journal of Economics 134(1), 185226.CrossRefGoogle Scholar
Chen, W (2009) Astonishing Position Consumption of Leadership Cadres. Outlook (Liaowang) 1 June. https://bit.ly/301PHzV.Google Scholar
Cooke, FL (2004) Public-sector pay in China: 1949–2001. The International Journal of Human Resource Management 15(4–5), 895916.CrossRefGoogle Scholar
Dahl, RA ([1961] 2005) Who Governs? Democracy and Power in an American City. New Haven, CT: Yale University Press.Google Scholar
Dal Bó, E and Finan, F (2018) Progress and perspectives in the study of political selection. Annual Review of Economics 10(1), 541575.CrossRefGoogle Scholar
Dal Bó, E, Finan, F and Rossi, MA (2013) Strengthening state capabilities: the role of financial incentives in the call to public service. The Quarterly Journal of Economics 128(3), 11691218.CrossRefGoogle Scholar
Davidson, R and MacKinnon, JG (2010) Wild bootstrap tests for IV regression. Journal of Business & Economic Statistics 28(1), 128144.CrossRefGoogle Scholar
Eggers, AC and Hainmueller, J (2009) MPs for sale? Returns to office in postwar British politics. American Political Science Review 103(4), 513533.CrossRefGoogle Scholar
Erola, J, Jalonen, S and Lehti, H (2016) Parental education, class and income over early life course and children's achievement. Research in Social Stratification and Mobility 44, 3343.CrossRefGoogle Scholar
Evans, PB (1995) Embedded Autonomy: States and Industrial Transformation. Princeton, NJ: Princeton University Press.CrossRefGoogle Scholar
Fang, H, Gu, Q and Zhou, L-A (2019) The gradients of power: evidence from the Chinese housing market. Journal of Public Economics 176, 3252.CrossRefGoogle Scholar
Fearon, JD (1999) Electoral accountability and the control of politicians: selecting good types versus sanctioning poor performance. In Przeworski, A, Stokes, SC and Manin, B (eds), Democracy, Accountability, and Representation. New York: Cambridge University Press, pp. 5597.CrossRefGoogle Scholar
Ferraz, C and Finan, F (2008) Exposing corrupt politicians: the effects of Brazil's publicly released audits on electoral outcomes. Quarterly Journal of Economics 123(2), 703745.CrossRefGoogle Scholar
Ferraz, C and Finan, F (2009) Motivating Politicians: The Impacts of Monetary Incentives on Quality and Performance. Working Paper 14906. Cambridge, MA: National Bureau of Economic Research.CrossRefGoogle Scholar
Fisman, R, Schulz, F and Vig, V (2017) Financial Disclosure and Political Selection: Evidence from India. Working Paper. https://bit.ly/2GV16Zn.Google Scholar
Fowler, A (2016) What explains incumbent success? Disentangling selection on party, selection on candidate characteristics, and office-holding benefits. Quarterly Journal of Political Science 11(3), 313338.CrossRefGoogle Scholar
Galasso, V and Nannicini, T (2011) Competing on good politicians. American Political Science Review 105(1), 7999.CrossRefGoogle Scholar
Goodman, DSG (2014) Class in Contemporary China. Cambridge: Polity Press.Google Scholar
Gordon, SC (2009) Assessing partisan bias in federal public corruption prosecutions. American Political Science Review 103(4), 534554.CrossRefGoogle Scholar
Gorodnichenko, Y and Peter, KS (2007) Public sector pay and corruption: measuring bribery from micro data. Journal of Public Economics 91(5–6), 963991.CrossRefGoogle Scholar
Grindle, MS (2012) Jobs for the Boys. Cambridge, MA: Harvard University Press.CrossRefGoogle Scholar
Guardado, J (2018) Office-selling, corruption, and long-term development in Peru. American Political Science Review 112(4), 971995.CrossRefGoogle Scholar
Hansen, LP (1982) Large sample properties of generalized method of moments estimators. Econometrica 50(4), 10291054.CrossRefGoogle Scholar
Helmke, G and Levitsky, S (2004) Informal institutions and comparative politics: a research agenda. Perspectives on Politics 2(4), 725740.CrossRefGoogle Scholar
Ho, P-T (1964) The ladder of success in imperial China: aspects of social mobility, I368-I911. American Behavioral Scientist 8(3), 3030.CrossRefGoogle Scholar
Hollyer, JR and Wantchekon, L (2014) Corruption and ideology in autocracies. The Journal of Law, Economics, and Organization 31(3), 499533.CrossRefGoogle Scholar
Huang, Y (2017) Cracking the China Conundrum: Why Conventional Economic Wisdom Is Wrong. Oxford: Oxford University Press.Google Scholar
Jia, R, Kudamatsu, M and Seim, D (2015) Political selection in China: the complementary roles of connections and performance. Journal of the European Economic Association 13(4), 631668.CrossRefGoogle Scholar
Jiang, J (2018) Making bureaucracy work: patronage networks, performance incentives, and economic development in China. American Journal of Political Science 62(4), 982999.CrossRefGoogle Scholar
Jiang, J, Shao, Z and Zhang, Z (2020) Replication Data for: The Price of Probity: Anticorruption and Adverse Selection in the Chinese Bureaucracy. https://doi.org/10.7910/DVN/SFYMSY, Harvard Dataverse, V1, UNF:6:ggS0sX1spN7C5ZzOYr2TIA== [fileUNF].Google Scholar
Keane, MP and Merlo, A (2010) Money, political ambition, and the career decisions of politicians. American Economic Journal: Microeconomics 2(3), 186215.Google Scholar
Key, VO (1956) American State Politics: An Introduction. New York: Alfred A. Knopf.Google Scholar
Klitgaard, R (1988) Controlling Corruption. Berkeley: University of California Press.CrossRefGoogle Scholar
Kotakorpi, K and Poutvaara, P (2011) Pay for politicians and candidate selection: an empirical analysis. Journal of Public Economics 95(7–8), 877885.CrossRefGoogle Scholar
Krueger, AB (1988) The determinants of queues for federal jobs. Industrial and Labor Relations Review 41(4), 567.CrossRefGoogle Scholar
Lawrance, EC (1991) Poverty and the rate of time preference: evidence from panel data. Journal of Political Economy 99(1), 5477.CrossRefGoogle Scholar
Lee, C (2013) Party selection of officials in contemporary China. Studies in Comparative International Development 48(4), 356379.CrossRefGoogle Scholar
Leys, C (1965) What is the problem about corruption? The Journal of Modern African Studies 3(2), 215230.CrossRefGoogle Scholar
Li, C (2016) Chinese Politics in the Xi Jinping Era: Reassessing Collective Leadership. Washington, DC: Brookings Institution Press.Google Scholar
Li, L and Zhang, S (2008) Analysis of the factors influencing undergraduates’ occupation choices. Chinese Journal of Sociology (Shehui), 162(2), 162180 [in Chinese].Google Scholar
Liu, APL (1983) The politics of corruption in the People's Republic of China. American Political Science Review 77(3), 602623.CrossRefGoogle Scholar
Liu, H (2019) The logic of authoritarian political selection: evidence from a conjoint experiment in China. Political Science Research and Methods 7(1), 853870.CrossRefGoogle Scholar
Lu, X and Lorentzen, PL (2016) Rescuing autocracy from itself: China's anti-corruption campaign. SSRN Electronic Journal.Google Scholar
Manion, M (2004) Corruption by Design: Building Clean Government in Mainland China and Hong Kong. Cambridge, MA: Harvard University Press.Google Scholar
Manion, M (2016) Taking China's anticorruption campaign seriously. Economic and Political Studies 4(1), 318.CrossRefGoogle Scholar
Mauro, P (1995) Corruption and growth. The Quarterly Journal of Economics 110(3), 681712.CrossRefGoogle Scholar
Meng, T, Pan, J and Yang, P (2017) Conditional receptivity to citizen participation: evidence from a survey experiment in China. Comparative Political Studies 50(4), 399433.CrossRefGoogle Scholar
Migdal, JS (1988) Strong Societies and Weak States. Princeton, NJ: Princeton University Press.Google Scholar
Olken, BA (2007) Monitoring corruption: evidence from a field experiment in Indonesia. Journal of Political Economy 115(2), 200249.CrossRefGoogle Scholar
Olowu, D (2010) Civil service pay reforms in Africa. International Review of Administrative Sciences 76(4), 632652.CrossRefGoogle Scholar
Palmier, LH (1985) The Control of Bureaucratic Corruption: Case Studies in Asia. New Delhi: Allied Publishers.Google Scholar
Pei, M (2018) How Not to fight corruption: lessons from China. Daedalus 147(3), 216230.CrossRefGoogle Scholar
Perry, JL and Wise, LR (1990) The motivational bases of public service. Public Administration Review 50(3), 367.CrossRefGoogle Scholar
Persson, A, Rothstein, B and Teorell, J (2012) Why anticorruption reforms fail–systemic corruption as a collective action problem. Governance 26(3), 449471.CrossRefGoogle Scholar
Quah, JST (2011) Curbing Corruption in Asian Countries: An Impossible Dream? Bingley: Emerald Group Publishing.CrossRefGoogle Scholar
Ramalho, R (2003) The effects of an anti-corruption campaign: evidence from the 1992 presidential impeachment in Brazil. Unpublished Paper.Google Scholar
Reinikka, R and Svensson, J (2005) Fighting corruption to improve schooling: evidence from a newspaper campaign in Uganda. Journal of the European Economic Association 3(23), 259267.CrossRefGoogle Scholar
Rose-Ackerman, S (1999) Corruption and Government: Causes, Consequences, and Reform. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Scott, I (1989) Political Change and the Crisis of Legitimacy in Hong Kong. Honolulu: University of Hawaii Press.Google Scholar
Shleifer, A and Vishny, RW (1993) Corruption. The Quarterly Journal of Economics 108(3), 599617.CrossRefGoogle Scholar
Shu, Y and Cai, J (2017) “Alcohol bans”: can they reveal the effect of Xi Jinping's anti-corruption campaign? European Journal of Political Economy 50, 3751.CrossRefGoogle Scholar
Svensson, J (2005) Eight questions about corruption. Journal of Economic Perspectives 19(3), 1942.CrossRefGoogle Scholar
Szakonyi, D (2018) Anti-Corruption Campaigns and Political Selection: Evidence from Russia. Working Paper. Available at https://dx.doi.org/10.2139/ssrn.3101123.CrossRefGoogle Scholar
Teachout, Z (2008) The anti-corruption principle. Cornell Law Review 94(2), 341413.Google Scholar
United Nations (1998) Action Against Corruption. Resolution 1998/16. Geneva: United Nations. https://bit.ly/2UtegFD.Google Scholar
Walder, AG (2003) Elite opportunity in transitional economies. American Sociological Review 68(6), 899916.CrossRefGoogle Scholar
Weaver, J (2018) Jobs for Sale: Corruption and Misallocation in Hiring. Working Paper. https://goo.gl/oVP12f.Google Scholar
World Bank (1997) Helping Countries Combat Corruption: The Role of the World Bank. The World Bank. https://bit.ly/2b4hOnV.Google Scholar
Wu, AM (2014) Governing Civil Service Pay in China. Copenhagen: Nordic Institute of Asian Studies Press.Google Scholar
Yao, Y (2018) An anatomy of the Chinese selectocracy. China Economic Journal 11(3), 228242.CrossRefGoogle Scholar
Yuen, S (2014) Disciplining the party. Xi Jinping's anti-corruption campaign and its limits. China Perspectives 2014(3), 4147.CrossRefGoogle Scholar
Zellweger, T, Sieger, P and Halter, F (2011) Should I stay or should I go? Career choice intentions of students with family business background. Journal of Business Venturing 26(5), 521536.CrossRefGoogle Scholar
Zhu, B (2016) MNCs, rents, and corruption: evidence from China. American Journal of Political Science 61(1), 8499.CrossRefGoogle Scholar
Supplementary material: PDF

Jiang et al. supplementary material

Online Appendix

Download Jiang et al. supplementary material(PDF)
PDF 1.3 MB
Supplementary material: Link

Jiang et al. Dataset

Link