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The allocation of time in public administrations subject to bribery in developing countries: The basic model of labour supplu revisited

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  • Siméon Maxime BIKOUE

    (Advanced School of Economics and Commerce, University of Douala)

Abstract

The purpose of this article is to revisit the basic model of labour supply taking into account the existence of corruption in public administrations in developing countries. The worker-consumer programme modified by the integration of bribery shows that at equilibrium, the optimal solution leads to a Marginal Rate of Substitution of leisure consumption equal to the real contractual wage rate plus the actual bribe rate. Because of the latter, the reserve wage is no longer an essential determinant for participating in the labour market. Corruption seems to amplify the substitution and income effects.

Suggested Citation

  • Siméon Maxime BIKOUE, 2020. "The allocation of time in public administrations subject to bribery in developing countries: The basic model of labour supplu revisited," Turkish Economic Review, EconSciences Journals, vol. 7(3), pages 151-163, October.
    • Handle: RePEc:cvv:journ2:v:7:y:2020:i:3:p:151-163
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    References listed on IDEAS

    as
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    2. François Bourguignon & Thierry Magnac, 1990. "Labor Supply and Taxation in France," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 358-389.
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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics

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