Why are Africans More Likely to Pay Bribes? The Effect of Institutions

Centre for the Study of Public Policy, U. of Strathclyde: Studies in Public Policy No. 519

24 Pages Posted: 27 Jun 2017

See all articles by Caryn Peiffer

Caryn Peiffer

Developmental Leadership Program

Richard Rose

University of Strathclyde - Center for the Study of Public Policy; European Union Institute

Date Written: 2016

Abstract

Studies find the poor are more likely to pay bribes than the better off, because of lower status. This paper proposes an alternative explanation: institutions matter. Given a choice between public and private services, the better off exit, but they cannot exit from monopoly services. Heckman analysis of Afrobarometer data find that the poor are more likely to pay bribes for choice services because they have disproportionate contact. However, socio-economic status has no significant effect on bribe-paying for monopoly services. Greater choice may reduce total bribery but also cause greater inequality between the poor and better off.

Keywords: Bribery, Poverty, Monopoly services, Choice, Contact

Suggested Citation

Peiffer, Caryn and Rose, Richard, Why are Africans More Likely to Pay Bribes? The Effect of Institutions (2016). Centre for the Study of Public Policy, U. of Strathclyde: Studies in Public Policy No. 519, Available at SSRN: https://ssrn.com/abstract=2992564

Caryn Peiffer

Developmental Leadership Program ( email )

Edgbaston
Birmingham, B15 2TT
United Kingdom

Richard Rose (Contact Author)

University of Strathclyde - Center for the Study of Public Policy ( email )

Glasgow, Scotland G1 1XQ
United Kingdom

European Union Institute ( email )

Via dei Roccettini 9
50014 San Domenico di Fiesole
Florence, Florence 50014
Italy

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