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Do public sector wages affect corruption?
Testing the fair wage hypothesis across countries and in Russia
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Scholarly Essay from the year 2010 in the subject Politics - International Politics - Region: Russia, printed single-sided, grade: 68 (B+), University College London, course: Year Abroad Project, language: English, abstract: 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.
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