Does Corruption Affect Income Inequality and Poverty?

May 1, 1998

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Format: Chicago

Sanjeev Gupta. Does Corruption Affect Income Inequality and Poverty?, (USA: International Monetary Fund, 1998) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper demonstrates that high and rising corruption increases income inequality and poverty by reducing economic growth, the progressivity of the tax system, the level and effectiveness of social spending, and the formation of human capital, and by perpetuating an unequal distribution of asset ownership and unequal access to education. These findings hold for countries with different growth experiences, at different stages of development, and using various indices of corruption. An important implication of these results is that policies that reduce corruption will also lower income inequality and poverty.

Subject: Corruption, Crime, Education, Income distribution, Income inequality, National accounts, Personal income

Keywords: Corruption, Corruption index, Growth of the poor, Income distribution, Income growth, Income inequality, Income inequality regression, Income-generating assets, Inequality regression, Limit poverty reduction, Personal income, Poverty, Social spending, WP

Publication Details

Pages:

41
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1998/076
Stock No:

WPIEA0761998
ISBN:

9781451849844
ISSN:

1018-5941

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