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The influence of wages on public officials’ corruptibility: A laboratory investigation

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  • van Veldhuizen, R.

Abstract

Previous studies have proposed a link between corruption and wages in the public sector. The present paper investigates this link using a laboratory experiment. In the experiment, public officials have the opportunity to accept a bribe and can then decide between a neutral and a corrupt action. The corrupt action benefits the briber but poses a large negative externality on a charity. The results show that increasing public officials’ wages greatly reduces their corruptibility. In particular, low-wage public officials accept 91% of bribes on average, whereas high-wage public officials accept 38%. Moreover, high-wage public officials are less likely to choose the corrupt option. Additionally, the results suggest that a positive monitoring rate may be necessary for these effects to arise.

Suggested Citation

  • van Veldhuizen, R., 2013. "The influence of wages on public officials’ corruptibility: A laboratory investigation," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 341-356.
  • Handle: RePEc:eee:joepsy:v:39:y:2013:i:c:p:341-356 DOI: 10.1016/j.joep.2013.09.009
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    Cited by:

    1. Christoph Engel, 2016. "Experimental Criminal Law. A Survey of Contributions from Law, Economics and Criminology," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2016_07, Max Planck Institute for Research on Collective Goods.
    2. Sheheryar Banuri & Catherine Eckel, 2015. "Cracking down on bribery," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(3), pages 579-600, October.
    3. Justin Buffat & Julien Senn, 2017. "Corruption and cooperation," ECON - Working Papers 260, Department of Economics - University of Zurich.
    4. Dmitry Ryvkin & Danila Serra, 2016. "The Industrial Organization of Corruption: Monopoly, Competition and Collusion," Working Papers wp2016_10_01, Department of Economics, Florida State University.
    5. repec:spr:comaot:v:23:y:2017:i:2:d:10.1007_s10588-016-9227-z is not listed on IDEAS
    6. Thebeth Rufaro Mukwembi & Simon Mukwembi, 0. "Corruption and its detection: a graph-theoretic approach," Computational and Mathematical Organization Theory, Springer, vol. 0, pages 1-8.

    More about this item

    Keywords

    Bribery; Corruption; Experimental economics; Laboratory experiment;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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