Template-Type: ReDIF-Paper 1.0
Author-Name: Ishac Diwan
Author-Workplace-Name: Center for International Development at Harvard University
Author-Name: Jamal Ibrahim Haider
Author-Workplace-Name: Center for International Development at Harvard University
Author-Person: pa650
Title: Do Political Connections Reduce Job Creation? Evidence from Lebanon
Abstract: Using firm-level census data, we determine how politically-connected firms (PCFs) reduce job creation in Lebanon. After observing that large firms account for the bulk of net job creation, we find that PCFs are larger and create more jobs, but are also less productive, than non-PCFs in their sectors. On a net basis, at the sector-level, each additional PCF reduces jobs created by 7.2% and jobs created by non-PCFs by 11.3%. These findings support the notion that politically-connected firms are used for clientelistic purposes in Lebanon, exchanging privileges for jobs that benefit their patrons’ supporters.
Creation-Date: 2016-06
Classification-JEL:  D47; J21; J38; L11; L53
Keywords:  job creation; politically-connected firms; clientelism; Lebanon
Number: 75
Handle: RePEc:glh:wpfacu:75
File-Url: http://growthlab.cid.harvard.edu/files/growthlab/files/diwan-haidar-rfwp70.pdf
File-Format: application/pdf