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Is Corruption Really Bad for Inequality? Evidence from Latin America

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  • Antonio Andres
  • Carlyn Ramlogan-Dobson

Abstract

This article presents new evidence on the relationship between corruption and income inequality. Using a panel data methodology, we find that lower corruption is associated with higher income inequality in Latin America. This result is in contrast to other empirical studies but it makes sense in Latin America for a number of reasons. The finding of an inverse relationship between inequality and corruption suggests that institutional reform policies by themselves may be misguided.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00220388.2010.509784
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 47 (2011)
Issue (Month): 7 ()
Pages: 959-976

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Handle: RePEc:taf:jdevst:v:47:y:2011:i:7:p:959-976

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Is Corruption Really Bad for Inequality?
    by Ariel Goldring in Free Market Mojo on 2010-04-25 07:28:38
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Cited by:
  1. Perera, Liyanage Devangi H. & Lee, Grace H.Y., 2013. "Have economic growth and institutional quality contributed to poverty and inequality reduction in Asia?," MPRA Paper 52763, University Library of Munich, Germany.
  2. 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.
  3. Scarlato, Margherita, 2012. "Social Enterprise, Capabilities and Development: Lessons from Ecuador," MPRA Paper 37618, University Library of Munich, Germany.
  4. 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.
  5. Pi, Jiancai & Zhou, Yu, 2013. "Institutional quality and skilled–unskilled wage inequality," Economic Modelling, Elsevier, vol. 35(C), pages 356-363.
  6. Dobson, Stephen & Ramlogan-Dobson, Carlyn, 2012. "Inequality, corruption and the informal sector," Economics Letters, Elsevier, vol. 115(1), pages 104-107.
  7. Kar, Saibal & Saha, Shrabani, 2012. "Corruption, Shadow Economy and Income Inequality: Evidence from Asia," IZA Discussion Papers 7106, Institute for the Study of Labor (IZA).

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