We would like to thank two anonymous referees for their valuable comments
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CORRUPTION AND INCOME INEQUALITY IN THE UNITED STATES
Article first published online: 13 APR 2011
DOI: 10.1111/j.1465-7287.2011.00262.x
© 2011 Western Economic Association International
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How to Cite
DINCER, O. C. and GUNALP, B. (2012), CORRUPTION AND INCOME INEQUALITY IN THE UNITED STATES. Contemporary Economic Policy, 30: 283–292. doi: 10.1111/j.1465-7287.2011.00262.x
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We would like to thank two anonymous referees for their valuable comments
Publication History
- Issue published online: 10 APR 2012
- Article first published online: 13 APR 2011
- Online Early publication April 13, 2011
- Abstract
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In this study we analyze the effects of corruption on income inequality. Our analysis advances the existing literature in three ways. First, instead of using one of the corruption indices assembled by various investment risk services, we use an objective measure of corruption: the number of public officials convicted in a state for crimes related to corruption. Second, we minimize the problems which are likely to arise because of data incomparability by examining the differences in income inequality across the United States. Finally, we exploit both time series and cross-sectional variation in the data. We find robust evidence that an increase in corruption increases income inequality. (JEL D31, D73, I32)