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The Tipping Point of Temptation: Prevention, Sanctions, and Selection into Public Service

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  • M. Rosso

Abstract

Corruption opportunities attract people who would exploit them and repel people who anticipate the cost of resisting them. I study both margins in a model of occupational choice with self-control costs. Three results stand out. First, when temptation is strong, small corruption rents can shrink the pool of entrants. Second, the public sector can lose integrity while it shrinks, so a stable or falling headcount can conceal a deteriorating workforce. Third, at equal net corrupt surplus, removing corruption opportunities yields weakly lower corruption than deferred sanctions, both ata given wage and with a fixed number of posts. When rents rise with the share of corrupt incumbents, the ranking carries over to steady states, and prevention can eliminate a highcorruption equilibrium that an equivalent sanction preserves.

Suggested Citation

  • M. Rosso, 2026. "The Tipping Point of Temptation: Prevention, Sanctions, and Selection into Public Service," Working Paper CRENoS 202615, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:202615
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    File URL: https://crenos.unica.it/bibcite/reference/8781
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    Keywords

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    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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