Good for the goose, bad for the gander? Corruption and income inequality.

We examine the relationship between corruption and income inequality across countries. While previous studies have explored this association at both an international and within‐country level, we expand on this literature in two distinct ways. First, along with the most commonly utilized measure of i...

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Publicado en:Southern Economic Journal Vol. 91; no. 3; pp. 850 - 881
Autores principales: Pavlik, Jamie Bologna, Callais, Justin T.
Formato: Artículo
Publicado: Wiley-Blackwell Jan2025
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Good for the goose, bad for the gander? Corruption and income inequality.
      aug:
        au:
          Pavlik, Jamie Bologna
          Callais, Justin T.
        affil:
          Department of Agricultural and Applied Economics, Texas Tech University, Lubbock Texas,, USA
          Department of Economics and Finance, University of Louisiana at Lafayette, Lafayette Louisiana,, USA
      su:
        Corruption
        Income inequality
        Informal sector
        Income distribution
        Elite (Social sciences)
        Gini coefficient
        Multiple comparisons (Statistics)
        Per capita
      sug:
        subj:
          Corruption
          Income inequality
          Informal sector
          Income distribution
          Elite (Social sciences)
          Gini coefficient
          Multiple comparisons (Statistics)
          Per capita
      keyword:
        causal inference
        corruption
        income deciles
        inequality
        matching methods
        causal inference
        corruption
        income deciles
        inequality
        matching methods
      ab: We examine the relationship between corruption and income inequality across countries. While previous studies have explored this association at both an international and within‐country level, we expand on this literature in two distinct ways. First, along with the most commonly utilized measure of inequality (Gini coefficients), we also examine income per‐capita at each decile, along with top 1% and 5%, and the associated income shares. Second, we employ an empirical strategy that differs from the existing literature. Our primary results are estimated using matching methods, but we also supplement these results with a "doubly robust" difference‐in‐difference design. We find that a reduction in corruption increases incomes of the top 80% but does not significantly impact incomes of the bottom 20%, or the top 1% and 5%. We find some evidence of income growth amongst the top 1% and 5% following increases in corruption, but these results are inconsistent across estimations. Our results also suggest that accounting for the size of the informal sector matters a great deal in understanding the relationship between corruption and the distribution of income.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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