Article ID Journal Published Year Pages File Type
5084126 International Review of Economics & Finance 2010 7 Pages PDF
Abstract
Does corruption aggravate wage-inequality? We try to answer this question in terms of a general equilibrium model where both skilled and unskilled workers participate in corruption. Corruption in our model diverts resources from the productive sectors. Factor intensities within the productive sectors and between production and corruption activities determine the wage impact of corruption. Lower degree of corruption may increase wage-inequality although the size of the corruption sector definitely contracts.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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