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IS CORRUPTION INHERENTLY BAD?: The effect of corruption on the Palma ratio: A cross-regional study of Brazil's federal states
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2016 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This thesis analyzes if there, given the size of the informal sector, is an effect of corruption on income inequality, here defined as the Palma ratio. Estimations are done with a fixed effects ordinary least squares regression using panel data for 19 federal states of Brazil over every other year between 2006-2014. The results provide evidence that corruption increases income inequality when the informal sector is smaller than 37.97%, but decreases inequality when the informal sector exceeds 55.34%. The findings are robust to several sensitivity checks. The gained insight of the relationship between corruption and income inequalityusing a microeconomic perspective is the main academic contribution of this thesis.

Place, publisher, year, edition, pages
2016.
Keyword [en]
Corruption; Income inequality; Palma; Informal sector; Brazil
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-298428OAI: oai:DiVA.org:uu-298428DiVA: diva2:946026
Supervisors
Examiners
Available from: 2016-07-04 Created: 2016-07-04 Last updated: 2016-07-04Bibliographically approved

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