Aditya Bharadwaj

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Such a scenario fits Besley and McLaren’s description of “capitulation wages,” wherein governments “abandon any attempt to solve either the moral hazard or adverse selection problem via wage incentives.”77 More simply put, when formal public wages are that low, civil servants are expected to steal, extort, or take petty bribes to finance themselves.
Aditya Bharadwaj
Government expected the bureaucrats to survive by taking bribes and extort
How China Escaped the Poverty Trap
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