IDEAS home Printed from https://ideas.repec.org/p/dbl/dblwop/1567.html
   My bibliography  Save this paper

Self-Selection into Corruption: Evidence from the Lab

Author

Listed:
  • Brassiolo, Pablo
  • Estrada, Ricardo
  • Fajardo, Gustavo
  • Vargas, Juan

Abstract

We study whether the existence of opportunities to extract rents in a job affects the type of individuals who are attracted to it. We design a laboratory experiment in which individuals choose between two contracts, each offering a payment in return for performing a task, and we experimentally introduce the possibility of graft in one of the contracts. First, we find that the corruptible contract attracts less honest individuals and repels the more honest ones, thus changing the composition of the group that chooses that contract to the detriment of integrity. Second, we observe extensive graft when the opportunity is introduced. Using a double randomization strategy to disentangle pure incentives and selection effects, we find that selection is the fundamental driver of graft in our context.

Suggested Citation

  • Brassiolo, Pablo & Estrada, Ricardo & Fajardo, Gustavo & Vargas, Juan, 2020. "Self-Selection into Corruption: Evidence from the Lab," Research Department working papers 1567, CAF Development Bank Of Latinamerica.
  • Handle: RePEc:dbl:dblwop:1567
    as

    Download full text from publisher

    File URL: https://scioteca.caf.com/handle/123456789/1567
    Download Restriction: Open Access

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Urs Fischbacher & Franziska Föllmi-Heusi, 2013. "Lies In Disguise—An Experimental Study On Cheating," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 525-547, June.
    2. Gallego, Jorge & Prem, Mounu & Vargas, Juan F., 2020. "Corruption in the Times of Pandemia," Working papers 43, Red Investigadores de Economía.
    3. Roland Bénabou & Jean Tirole, 2011. "Identity, Morals, and Taboos: Beliefs as Assets," The Quarterly Journal of Economics, Oxford University Press, vol. 126(2), pages 805-855.
    4. Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer.
    5. Banerjee, Ritwik & Baul, Tushi & Rosenblat, Tanya, 2015. "On self selection of the corrupt into the public sector," Economics Letters, Elsevier, vol. 127(C), pages 43-46.
    6. Ferraz, Claudio & Finan, Frederico S., 2008. "Motivating Politicians: The Impacts of Monetary Incentives on Quality and Performance," IZA Discussion Papers 3411, Institute of Labor Economics (IZA).
    7. Dean Karlan & Jonathan Zinman, 2009. "Observing Unobservables: Identifying Information Asymmetries With a Consumer Credit Field Experiment," Econometrica, Econometric Society, vol. 77(6), pages 1993-2008, November.
    8. Erika Deserranno, 2019. "Financial Incentives as Signals: Experimental Evidence from the Recruitment of Village Promoters in Uganda," American Economic Journal: Applied Economics, American Economic Association, vol. 11(1), pages 277-317, January.
    9. Benjamin A. Olken, 2007. "Monitoring Corruption: Evidence from a Field Experiment in Indonesia," Journal of Political Economy, University of Chicago Press, vol. 115, pages 200-249.
    10. Rema Hanna & Shing-Yi Wang, 2017. "Dishonesty and Selection into Public Service: Evidence from India," American Economic Journal: Economic Policy, American Economic Association, vol. 9(3), pages 262-290, August.
    11. Sebastian Barfort & Nikolaj A. Harmon & Frederik Hjorth & Asmus Leth Olsen, 2019. "Sustaining Honesty in Public Service: The Role of Selection," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 96-123, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Corrupción;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dbl:dblwop:1567. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pablo Rolando). General contact details of provider: http://edirc.repec.org/data/cafffve.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.