Corruption and Income Inequality in the United States
Oguzhan C. Dincer
Illinois State University ; Harvard University - Edmond J. Safra Center for Ethics
Contemporary Economic Policy, Vol. 30, Issue 2, pp. 283-292, 2012
In this study we analyze the effects of corruption on income inequality. Our analysis advances the existing literature in three ways. First, instead of using one of the corruption indices assembled by various investment risk services, we use an objective measure of corruption: the number of public officials convicted in a state for crimes related to corruption. Second, we minimize the problems which are likely to arise because of data incomparability by examining the differences in income inequality across the United States. Finally, we exploit both time series and cross‐sectional variation in the data. We find robust evidence that an increase in corruption increases income inequality.
Number of Pages in PDF File: 10
JEL Classification: D31, D73, I32Accepted Paper Series
Date posted: April 19, 2012
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