Engaging in Corruption: The Influence of Cultural Values and Contagion Effects at the Micro Level

35 Pages Posted: 26 Oct 2013

See all articles by Wang-Sheng Lee

Wang-Sheng Lee

Deakin University

Cahit Guven

Deakin University - School of Accounting, Economics and Finance

Abstract

Previous empirical work on corruption has generally been cross-country in nature and focused on utilizing country-level corruption ratings. By using micro-level data for over 20 European countries that directly measure individual characteristics, corruption experiences, gender roles, trust and values to examine the determinants of corruption, this paper goes beyond the search for associations between various macro factors and perceptions of corruption that is prevalent in the economic literature.One focus of the paper is on how cultural norms such as gender roles and risk preferences influence corruption and whether there are gender differences in the determinants of corruption. In addition, this paper also seeks to determine if there are contagion effects in corruption at the micro level. Using a seemingly unrelated probit approach, this paper provides empirical estimates of how past experiences with corruption affects both how bribery is viewed and the actual act of offering a bribe.

Keywords: risk preference, gender roles, corruption, seemingly unrelated probit

JEL Classification: K420, O170

Suggested Citation

Lee, Wang-Sheng and Guven, Cahit, Engaging in Corruption: The Influence of Cultural Values and Contagion Effects at the Micro Level. IZA Discussion Paper No. 7685, Available at SSRN: https://ssrn.com/abstract=2345602

Wang-Sheng Lee (Contact Author)

Deakin University ( email )

Burwood, Victoria 3215
Australia
+61392446669 (Phone)

HOME PAGE: http://www.deakin.edu.au/buslaw/aef/staff/profiles/lee.php

Cahit Guven

Deakin University - School of Accounting, Economics and Finance ( email )

221 Burwood Highway
Burwood, Victoria 3215
Australia

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