This paper will analyse one aspect of corruption that has been very present in the corruption literature after mid-1990s: the effect of wages on corruption. Van Rijckeghem’s and Weder’s model of the fair wage hypothesis will be first explained in this paper and then used on a cross-sectional study of 29 countries and on data from within Russia between the years 2001 – 2005. In doing so, Occam’s Razor will be applied by only analysing the effects of wages on corruption, ignoring all historic and institutional aspects of a particular country. The results do not prove the fair wage hypothesis beyond doubt, although some evidence point that satisfactory wages will reduce corruption.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Endemic corruption
- How to fight corruption: the fair-wage hypothesis
- Literature review
- Maximising vs. Satisficing
- Empirical Evidence
- Literature on Corruption in Russia
- Theoretical Model
- Building the model
- Empirical Evidence
- Perceived corruption: International Country Risk Guide
- Approximating actual levels of corruption: Enterprise Surveys
- Methodolgy
- Results
- Critique
- Evidence for the fair wage hypothesis in Russia?
- Concluding remarks
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the impact of wages on corruption levels, specifically testing the "fair wage hypothesis" across countries and within Russia. It aims to analyze the relationship between public sector wages and corruption, using a theoretical model and empirical data. The study utilizes Van Rijckeghem's and Weder's model of the fair wage hypothesis, focusing on the effect of wages on corruption while disregarding historical and institutional factors.
- The relationship between public sector wages and corruption
- The fair wage hypothesis as a theoretical framework
- Empirical analysis of corruption across countries and in Russia
- The impact of corruption on economic development and societal well-being
- Policy implications for combating corruption through wage adjustments
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the concept of endemic corruption in Russia, citing examples from the country's history and contemporary society. It highlights the prevalence of corruption across various sectors and discusses the need for policies to combat this phenomenon. The chapter then presents the "fair wage hypothesis" as a potential strategy to reduce corruption.
- Literature review: This chapter provides an overview of existing research on corruption. It explores different perspectives on corruption, including theories related to maximizing and satisficing behavior. The chapter further delves into empirical evidence supporting the link between wages and corruption, and examines relevant literature on corruption in Russia.
- Theoretical Model: This chapter presents the theoretical framework for the study, explaining the model used to analyze the relationship between wages and corruption. It incorporates the fair wage hypothesis and describes the methodology used for data analysis.
- Methodolgy: This chapter outlines the research methodology employed in the study, detailing the data sources used and the statistical techniques applied for analyzing the relationship between wages and corruption.
- Results: This chapter presents the findings of the empirical analysis, discussing the evidence supporting or refuting the fair wage hypothesis. It also critically examines the limitations of the data and methodology used.
- Evidence for the fair wage hypothesis in Russia?: This chapter delves specifically into the evidence for the fair wage hypothesis in Russia, drawing upon data and case studies specific to the Russian context.
Schlüsselwörter (Keywords)
This research paper centers around the relationship between public sector wages and corruption, focusing on the "fair wage hypothesis" and its implications for combating corruption across countries and in Russia. The paper explores themes of corruption, public sector reform, economic development, and the impact of wages on corruption levels. Key concepts include the rational choice model of corruption, the fair wage hypothesis, empirical research, cross-country comparison, and the Russian context.
- Quote paper
- Roman Scheffler (Author), 2010, Do public sector wages affect corruption?, Munich, GRIN Verlag, https://www.grin.com/document/177260
