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Does Corruption Promote Emigration? An Empirical Examination

Author

Listed:
  • Cooray, Arusha

    (University of Wollongong)

  • Schneider, Friedrich

    (University of Linz)

Abstract
This paper empirically investigates the relationship between corruption and the emigration of those with high, medium and low levels of educational attainment. The empirical results indicate that as corruption increases the emigration rate of those with high levels of educational attainment also increases. The emigration rate of those with middle and low levels of educational attainment, however, increases at initial levels of corruption and then decreases beyond a certain point. Splitting the sample by income inequality suggests that increased inequality reduces the ability to emigrate. The policy conclusion is, that government actions should focus on controlling corruption, which in turn would lead to funds being channeled more productively into education and also lead to a fall in inequality which would reduce emigration.

Suggested Citation

  • Cooray, Arusha & Schneider, Friedrich, 2014. "Does Corruption Promote Emigration? An Empirical Examination," IZA Discussion Papers 8094, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8094
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    More about this item

    Keywords

    income inequality; government expenditures; educational attainment; emigration; corruption; labor markets;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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