The Effects of Education on Corruption: Evidence from Vietnam's University Expansion

58 Pages Posted: 13 Dec 2024

See all articles by Edmund J. Malesky

Edmund J. Malesky

Duke University - Department of Political Science

Martin Mattsson

National University of Singapore (NUS) - Department of Economics

Khoa Vu

University of Minnesota - St. Paul - Department of Applied Economics

Liaoliang Zhang

National University Singapore

Date Written: October 24, 2024

Abstract

Education and corruption are negatively correlated at the cross-national level, but little is known about the causal relationship between the two. We combine data on Vietnam's expansion of universities in 40 new districts with detailed survey data on experiences of corruption from over 170,000 respondents in 320 districts across 12 years. Using an age cohort difference-indifferences approach, we show that cohorts exposed to the university expansion are 64.8% more likely to have a university degree. However, this increase neither translates into a lower propensity to pay bribes nor an increased propensity to denounce corrupt officials. Instead, we find that education increases the propensity to pay bribes at the individual level. The mechanism for this increase that is most consistent with our data is that education raises household income and higher income leads to more bribe payments.

Keywords: Corruption, Education, Institutions and Development, Government Accountability JEL Codes: D73, H75, I23, I25

Suggested Citation

Malesky, Edmund J. and Mattsson, Martin and Vu, Khoa and Zhang, Liaoliang, The Effects of Education on Corruption: Evidence from Vietnam's University Expansion (October 24, 2024). Available at SSRN: https://ssrn.com/abstract=4998173 or http://dx.doi.org/10.2139/ssrn.4998173

Edmund J. Malesky

Duke University - Department of Political Science ( email )

140 Science Drive (Gross Hall), 2nd floor
Duke University Mailcode: 90204
Durham, NC 27708-0204
United States

Martin Mattsson (Contact Author)

National University of Singapore (NUS) - Department of Economics ( email )

21 Lower Kent Ridge Rd
Singapore, 119077
Malaysia

HOME PAGE: http://www.martin-mattsson.com

Khoa Vu

University of Minnesota - St. Paul - Department of Applied Economics ( email )

1994 Bufford Avenue
Saint Paul, MN 55108
United States

Liaoliang Zhang

National University Singapore ( email )

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