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Does Corruption Promote Emigration? An Empirical Examination

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  • Cooray, Arusha

    () (University of Wollongong)

  • Schneider, Friedrich

    () (University of Linz)

Abstract

This paper empirically investigates the relationship between corruption and the emigration of those with high, medium and low levels of educational attainment. The empirical results indicate that as corruption increases the emigration rate of those with high levels of educational attainment also increases. The emigration rate of those with middle and low levels of educational attainment, however, increases at initial levels of corruption and then decreases beyond a certain point. Splitting the sample by income inequality suggests that increased inequality reduces the ability to emigrate. The policy conclusion is, that government actions should focus on controlling corruption, which in turn would lead to funds being channeled more productively into education and also lead to a fall in inequality which would reduce emigration.

Suggested Citation

  • Cooray, Arusha & Schneider, Friedrich, 2014. "Does Corruption Promote Emigration? An Empirical Examination," IZA Discussion Papers 8094, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp8094
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    Cited by:

    1. Daniel Meierrieks & Laura Renner, 2017. "Stymied ambition: does a lack of economic freedom lead to migration?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 977-1005, July.
    2. Mawusse K.N. Okey, 2016. "Corruption And Emigration Of Physicians From Africa," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 41(2), pages 27-52, June.
    3. repec:bla:econpa:v:36:y:2017:i:1:p:60-74 is not listed on IDEAS
    4. Marko Danon, 2014. "Constructing a Novel Competitiveness Index for European Regions," GREDEG Working Papers 2014-42, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    5. repec:ove:journl:aid:11334 is not listed on IDEAS
    6. Dimant, Eugen, 2014. "The Antecedents and Effects of Corruption - A Reassessment of Current (Empirical) Findings," MPRA Paper 60947, University Library of Munich, Germany.
    7. Marie Poprawe, 2015. "On the relationship between corruption and migration: empirical evidence from a gravity model of migration," Public Choice, Springer, vol. 163(3), pages 337-354, June.
    8. Guzi, Martin & Mikula, Stepan, 2018. "Reforms That Keep You at Home: The Effects of Economic Transition on Migration," IZA Discussion Papers 11369, Institute for the Study of Labor (IZA).
    9. Eugen Dimant & Tim Krieger & Margarete Redlin, 2015. "A Crook is a Crook … But is He Still a Crook Abroad? On the Effect of Immigration on Destination-Country Corruption," German Economic Review, Verein für Socialpolitik, vol. 16(4), pages 464-489, November.

    More about this item

    Keywords

    corruption; emigration; educational attainment; government expenditures; income inequality; labor markets;

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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