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Self-Selection into Corruption: Evidence from the Lab

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  • 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
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    References listed on IDEAS

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    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.
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    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.
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    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

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