Cheating and Corruption: Evidence from a Household Survey

34 Pages Posted: 28 Oct 2019

See all articles by Olaf Hübler

Olaf Hübler

University of Hannover; IZA Institute of Labor Economics

Melanie Koch

German Institute for Economic Research (DIW Berlin)

Lukas Menkhoff

RWTH Aachen University - Faculty of Economics

Ulrich Schmidt

Kiel Institute for the World Economy

Date Written: October 2019

Abstract

This study tests the prediction that a corrupt government reduces ethical behavior among its citizens. We integrate a standard "cheating" experiment into a broad household survey and find clear support for this prediction: respondents who perceive corruption in state affairs are more likely to cheat. Interestingly, there is a small group of non-conformers. The main relation is robust to consideration of many (largely insignificant) socio-demographic control variables. Attendance of others at the cheating experiment, thus stimulating the reputational concern to be seen as honest, reduces cheating. Again, this does not diminish the predictive role of corruption.

Keywords: Cheating, Corruption, Individual Characteristics, Lab-in-the-Field Experiment

JEL Classification: D91, D81, D73

Suggested Citation

Hübler, Olaf and Koch, Melanie and Menkhoff, Lukas and Schmidt, Ulrich, Cheating and Corruption: Evidence from a Household Survey (October 2019). DIW Berlin Discussion Paper No. 1826 (2019). Available at SSRN: https://ssrn.com/abstract=3476538 or http://dx.doi.org/10.2139/ssrn.3476538

Olaf Hübler

University of Hannover ( email )

Institute of Quantitative Economic Research
D-30167 Hannover
Germany
+49 511 762 4794 (Phone)
+49 511 762 3923 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Melanie Koch (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Lukas Menkhoff

RWTH Aachen University - Faculty of Economics ( email )

Aachen
Germany

Ulrich Schmidt

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

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