The Value of Revolving Doors in Public Procurement

Résumé

We investigate the impact of revolving door on public procurement outcomes, combining 10 years of Brazilian health procurement data with a comprehensive employer-employee dataset tracking individuals’ job trajectories. We identify how movements between public administrations and private providers affect total contracting amounts and acquisition prices. Analyzing career changes in both directions, we uncover positive and negative effects, consistent respectively with reward for high-skill workers’ competence, and collusive behavior. Administration-to-supplier movements appear beneficial to public bodies, while supplier-to-administration ones are detrimental. This points to unexpected policy implications related to the tolerance of revolving door practices.

Mots-clés

Revolving doors; Procurement; Public Officials Career Path; Personnel Economics.;

Codes JEL

D72: Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior
D73: Bureaucracy • Administrative Processes in Public Organizations • Corruption
H11: Structure, Scope, and Performance of Government
H57: Procurement
J45: Public Sector Labor Markets