Political Alignment and Bureaucratic Pay

Abstract Building on agency-theoretical perspectives of public bureaucracies, we argue that politician–bureaucrat preference alignment can have important implications for bureaucrats’ pay. We study such private gains to bureaucrats from their political with elected politicians using detailed data all 1,632 top administrators active in Norwegian municipalities over a period 25 years (1991–2015). Whereas existing studies generally rely proxies alignment, rare feature our allows measuring it directly since 27% ran office. focus explicitly individuals at the very administrative hierarchy and are able separate intensive margin (i.e., wage increases) any additional effects extensive new appointments). Using close elections inference regression discontinuity analysis, find significantly increases even civil service system. This has also theoretical perspective. Our results indeed go against predictions models policy-motivated bureaucrats, but consistent politically aligned principal–agent matches being more productive.