2024 Rosenstein-Rodan Prize Awarded to Justin Jihao Hong
We are very happy to announce the winner of the 2024 Rosenstein-Rodan prize, awarded by the IED:
Justin Jihao Hong: Corruption and Human Capital Supply for the State
Congratulations, Justin!
The Rosenstein-Rodan prize is awarded annually in memory of Professor Paul Rosenstein-Rodan. A monetary prize is awarded to the best research paper(s) in development economics or related field submitted by a PhD student at Boston University.
Read his paper abstract here:
Justin Jihao Hong: Corruption and Human Capital Supply for the State
I study the impact of corruption crackdown on human capital supply for the state, exploiting China’s staggered anti-corruption inspections that have dampened perceived corruption returns. Using unique applicant data from state organizations, I find that anti-corruption induces positive selection for integrity and prosociality into the state sector, without significantly affecting overall ability. These shifts in supply are associated with enhanced performance. Changes in occupational preferences from a representative household panel corroborate static talent allocation as a prominent mechanism, with treated honest types showing higher preferences for state jobs – even when conditioned on ability and family background. I further document dynamic effects wherein households increase investment in human capital and the integrity of the next generation, which can reinforce the allocational effects and generate long-term dependence. Collectively, these findings highlight reward structures as an important determinant shaping the state’s human capacity.