Gender inequality, corruption and economic development

Gonzalo Forgues-Puccio, Erven Lauw

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    8 Citations (Scopus)
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    Abstract

    We investigate the effect of bureaucratic corruption on economic development when women are discriminated against in the labor market. The analysis is based on a dynamic general equilibrium model in which capital accumulation drives economic development. The government appoints bureaucrats to administer public policy. Corruption arises due to the opportunity for bureaucrats to embezzle public funds. In the event of detection and dismissal, the private sector serves as the bureaucrats' outside option. Our main results can be summarized as follows: first, when the public sector is a more gender-equal employer than the private sector, female bureaucrats are less corrupt than male; second, corruption and development are jointly determined allowing the possibility of a poverty trap; and third, a policy to increase female participation in the public sector potentially reduces corruption and fosters economic development.
    Original languageEnglish
    Article number12793
    Pages (from-to)2133-2156
    Number of pages24
    JournalReview of Development Economics
    Volume25
    Issue number4
    Early online date2 Jun 2021
    DOIs
    Publication statusPublished - 11 Nov 2021

    Keywords

    • Corruption
    • Economic development
    • Gender inequality

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