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What Drives Corruption? Evidence from North African Firms

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  • Clara Delavallade

    () (SALDRU, School of Economics, University of Cape Town)

Abstract

We estimate the effect of the child support grant on mothers' labour supply in South Africa. Identification is based on the use of specific samples, such as black mothers, aged 20 to 45, whose youngest child is aged within 2 years of the age eligibility cut-off, and unanticipated variation over the years in the age eligibility cut-off. Balancing tests across the age cut-o s are used to show that there are no signi cant di erences between mothers of eligible and ineligible children in the samples used, over the years. Different techniques are used to estimate the effect of the child support grant from many angles, including simple OLS as a bench mark, a difference in difference estimator, using appropriately constructed treatment and control groups, instrumental variables estimates, and descriptive analysis. The effect of having an age eligible child is large. Mothers who become recipients in their twenties see an average increase in employment probability of 15%, and in labour force participation of 9%. Many robustness and specification checks are used, including placebo regressions in the pre-treatment years, to ensure the estimated effect is not due to age or another variable.

Suggested Citation

  • Clara Delavallade, 2011. "What Drives Corruption? Evidence from North African Firms," SALDRU Working Papers 68, Southern Africa Labour and Development Research Unit, University of Cape Town.
  • Handle: RePEc:ldr:wpaper:68
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    References listed on IDEAS

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    Cited by:

    1. Pieroni, Luca & d'Agostino, Giorgio & Bartolucci, Francesco, 2013. "Identifying corruption through latent class models: evidence from transition economies," MPRA Paper 43981, University Library of Munich, Germany.
    2. Tomson Ogwang & Danny Cho, 2014. "A Conceptual Framework for Constructing a Corruption Diffusion Index," Journal of Business Ethics, Springer, vol. 125(1), pages 1-9, November.
    3. Colin C. Williams & Abbi M. Kedir, 2016. "The Impacts Of Corruption On Firm Performance: Some Lessons From 40 African Countries," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-18, December.
    4. Joseph Mawejje & Ibrahim Mike Okumu, 2016. "Tax Evasion and the Business Environment in Uganda," South African Journal of Economics, Economic Society of South Africa, vol. 84(3), pages 440-460, September.
    5. d'Agostino, G. & Dunne, J.P. & Pieroni, L., 2016. "Corruption and growth in Africa," European Journal of Political Economy, Elsevier, vol. 43(C), pages 71-88.

    More about this item

    Keywords

    Supply of Corruption; Administrative Corruption; State Capture; Tax Evasion; Competitiveness; North Africa;

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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