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SPP 519

Title: WHY ARE AFRICANS MORE LIKELY TO PAY BRIBES? THE EFFECT OF INSTITUTIONS
 
Author: Caryn Peiffer and Richard Rose
 
Description: Studies find the poor are more likely to pay bribes than the better off, because of lower status. This paper proposes an alternative explanation: institutions matter. Given a choice between public and private services, the better off exit, but they cannot exit from monopoly services. Heckman analysis of Afrobarometer data find that the poor are more likely to pay bribes for choice services because they have disproportionate contact. However, socio-economic status has no significant effect on bribe-paying for monopoly services. Greater choice may reduce total bribery but also cause greater inequality between the poor and better off.

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Postal Address:    CSPP Publications, University of Strathclyde, Glasgow, G1 1XQ, UK

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