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Corruption and wage inequality?

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  • Mandal, Biswajit
  • Marjit, Sugata

Abstract

Does corruption aggravate wage-inequality? We try to answer this question in terms of a general equilibrium model where both skilled and unskilled workers participate in corruption. Corruption in our model diverts resources from the productive sectors. Factor intensities within the productive sectors and between production and corruption activities determine the wage impact of corruption. Lower degree of corruption may increase wage-inequality although the size of the corruption sector definitely contracts.

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Bibliographic Info

Article provided by Elsevier in its journal International Review of Economics & Finance.

Volume (Year): 19 (2010)
Issue (Month): 1 (January)
Pages: 166-172

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Handle: RePEc:eee:reveco:v:19:y:2010:i:1:p:166-172

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Web page: http://www.elsevier.com/locate/inca/620165

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Keywords: Corruption Wage-inequality General equilibrium;

References

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Citations

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Cited by:
  1. Antonio Andres & Carlyn Ramlogan-Dobson, 2011. "Is Corruption Really Bad for Inequality? Evidence from Latin America," Journal of Development Studies, Taylor & Francis Journals, vol. 47(7), pages 959-976.
  2. Pi, Jiancai & Zhou, Yu, 2013. "Institutional quality and skilled–unskilled wage inequality," Economic Modelling, Elsevier, vol. 35(C), pages 356-363.
  3. Mandal, Biswajit, 2009. "Would Recession Induce More Intermediation in the Corrupt Informal Sector?," MPRA Paper 19930, University Library of Munich, Germany, revised 10 Jan 2010.
  4. Mandal, Biswajit, 2014. "Traded Goods, Tax and Intermediation - the Role of Corrupt Nontraded Sector," MPRA Paper 56525, University Library of Munich, Germany.
  5. Marjit, Sugata & Mandal, Biswajit, 2010. "Extortion and Informal Sector in a Small Open Economy," MPRA Paper 25044, University Library of Munich, Germany.
  6. Dobson, Stephen & Ramlogan-Dobson, Carlyn, 2012. "Why is Corruption Less Harmful to Income Inequality in Latin America?," World Development, Elsevier, vol. 40(8), pages 1534-1545.
  7. Mandal, Biswajit & Marjit, Sugata, 2013. "Trade reform, intermediation and corruption," Economic Modelling, Elsevier, vol. 33(C), pages 741-746.
  8. Waqar Wadho, 2013. "Control rights, bureaucratic corruption and the allocation of resources," European Journal of Law and Economics, Springer, vol. 35(1), pages 41-59, February.
  9. Biswajit Mandal & Sugata Marjit, 2012. "Capital inflow, vanishing sector and wage distribution in an economy with corruption related intermediation," Economics Bulletin, AccessEcon, vol. 32(3), pages 2128-2135.

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