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What is the effect of politicians鈥� wages on corruption in the presence of criminal groups,
that use both bribes and violence? With a regression discontinuity design and three distinct
proxies for corruption, we show that better paid Italian politicians are more likely to
promote transparency and competition in procurement, but also more likely to incur criminal
attacks. The effects of wages, which subside after three years, are driven by changes
in incumbents鈥� behavior rather than improved selection. These findings show how higher
wages may curb corruption, but also foster the use of violence as an alternative tool to
influence policymaking.
