Mo’ Money, No Problem: The Impact of Financial Shocks on Representation

Abstract

While scholars have discussed what is necessary for passive representation to translate to active representation, few have considered how context may change the bureaucrat’s decision to act on behalf of clients. This research theoretically explains that as representative bureaucracy translates from passive to active representation, a dynamic organizational context like funding may indirectly hinder or promote bureaucratic behaviors such as active representation. Using U.S. education data, the findings indicate that organizational financial stress can influence the relationship between racial minority bureaucrats and same-race client outcomes. Specifically, as more resources are allocated to the technical core of the organization, minority bureaucrats positively influence minority client outcomes. The results, however, are inconsistent when observing broad patterns of total revenue.

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