IS CORRUPTION INHERENTLY BAD?: The effect of corruption on the Palma ratio: A cross-regional study of Brazil's federal states
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
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
Corruption; Income inequality; Palma; Informal sector; Brazil
IdentifiersURN: urn:nbn:se:uu:diva-298428OAI: oai:DiVA.org:uu-298428DiVA: diva2:946026
Bengtsson, Niklas, Biträdande universitetslektor
Guvå, Tomas, Universitetslektor