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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

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.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-298428
Date January 2016
CreatorsCrabo, Amanda, Källestål, Alexander
PublisherUppsala universitet, Nationalekonomiska institutionen, Uppsala universitet, Nationalekonomiska institutionen
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

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