Corruption and the Rate of Temptation: Do Low Wages in the Civil Service Cause Corruption?

June 1, 1997

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper develops and tests two efficiency wage models of corruption in the civil service. Under fair wage models, civil service wages are an important determinant of corruption. Under shirking models, the level of wages is of secondary importance, as potential bribes dwarf wage income. The empirical evidence points to a negative relationship between corruption and wages across developing countries. Tests as to the validity of the two different efficiency wage models are inconclusive.

Subject: Civil service, Corruption, Crime, Income, Labor, National accounts, Public sector wages, Wages

Keywords: Africa, black market, capitulation wage, civil servant, Civil service, civil service wage, Corruption, Income, manufacturing wage, market clearing wage, pay reform, private sector, private sector wage, Public sector wages, relative wage, wage data, wage hypothesis, wage policy, wage variable, wage-corruption hypothesis, Wages, wg relative, WP

Pages:
56
Volume:
1997
DOI:
https://doi.org/10.5089/9781451849424.001
Issue:
073
Series:
Working Paper No. 1997/073
Stock No:
WPIEA0731997
ISBN:
9781451849424
ISSN:
1018-5941

IMF’s Work

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

Loading component...

IMF Working Papers