Corruption and Income Inequality in the United States

10 Pages Posted: 19 Apr 2012

See all articles by Oguzhan C. Dincer

Oguzhan C. Dincer

Illinois State University - Department of Economics; Harvard University - Edmond J. Safra Center for Ethics

Burak Gunalp

Cankaya University

Date Written: April 2012

Abstract

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.

JEL Classification: D31, D73, I32

Suggested Citation

Dincer, Oguzhan C. and Gunalp, Burak, Corruption and Income Inequality in the United States (April 2012). Contemporary Economic Policy, Vol. 30, Issue 2, pp. 283-292, 2012. Available at SSRN: https://ssrn.com/abstract=2042359 or http://dx.doi.org/10.1111/j.1465-7287.2011.00262.x

Oguzhan C. Dincer (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Harvard University - Edmond J. Safra Center for Ethics ( email )

124 Mount Auburn Street
Suite 520N
Cambridge, MA 02138
United States

Burak Gunalp

Cankaya University ( email )

Department of Economics
06790 Etimesgut
Ankara
Turkey
+903122331265 (Phone)
+903122331027 (Fax)

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