Corruption and the Rate of Temptation

Download or read book Corruption and the Rate of Temptation written by International Monetary Fund and published by International Monetary Fund. This book was released on 1997-06-01 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops and tests two efficiency wage models of corruption in the civil service. Under fair wage models, civil service wages are an important determinant of corruption. Under shirking models, the level of wages is of secondary importance, as potential bribes dwarf wage income. The empirical evidence points to a negative relationship between corruption and wages across developing countries. Tests as to the validity of the two different efficiency wage models are inconclusive.