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AbstractWe study the allocation of driver's licenses in India by randomly assigning applicants to one of three groups: bonus (offered a bonus for obtaining a license quickly), lesson (offered free driving lessons), or comparison. Both the bonus and lesson groups are more likely to obtain licenses. However, bonus group members are more likely to make extralegal payments and to obtain licenses without knowing how to drive. All extralegal payments happen through private intermediaries (“agents”). An audit study of agents reveals that they can circumvent procedures such as the driving test. Overall, our results support the view that corruption does not merely reflect transfers from citizens to bureaucrats but distorts allocation.
Before you travel the world, pick up your International Driving Permit (IDP), even if you do not plan to drive abroad. An IDP contains your name, photo, and driver information translated in ten different languages, and is recognized in more than 150 countries. Foreign Nationals Driving in the United States People who drive in the U.S. Must have a valid driver's license. Some states require an International Driving Permit (IDP) from foreign nationals, in addition to a valid license from your own country.