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The High Cost of Political Influence

"Political influence may come at the cost of lower productivity," explains Anders OlofsgÌ´rd, a senior fellow at the Stockholm Institute of Transition Economics at the Stockholm School of Economics. "Politicians are expecting something in return from you. One way to pay back politicians is through jobs. So you may be locked into keeping higher employment than you otherwise might be." OlofsgÌ´rd and co-author Raj M. Desai, a visiting fellow at the Brookings Institution, argue that bloated staffs are no bargain for any company.

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