The impacts of corruption on wage inequality and rural–urban migration in developing countries

Jiancai Pi, Yu Zhou

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

This paper establishes three-sector general equilibrium models and separately investigates how sector-biased corruption influences the wage rates of skilled and unskilled workers, the wage inequality, and the amount of unskilled rural–urban migrants in developing countries. Corrupt activities are introduced in our theoretical models as transaction costs. We find that the reductions in different sector-biased corrupt behaviors exert different impacts through various economic mechanisms. In addition, the change in urban unskilled unemployment due to the decrease in the degree of sector-biased corruption is also taken into account.

Original languageEnglish
Pages (from-to)753-768
Number of pages16
JournalAnnals of Regional Science
Volume54
Issue number3
DOIs
Publication statusPublished - 2015 May 1
Externally publishedYes

Fingerprint

corruption
wage
developing world
developing country
migration
unskilled worker
skilled worker
transaction cost
equilibrium model
transaction costs
unemployment
migrant
economics
rate

Keywords

  • D73
  • J31
  • R23

ASJC Scopus subject areas

  • Environmental Science(all)
  • Social Sciences(all)

Cite this

The impacts of corruption on wage inequality and rural–urban migration in developing countries. / Pi, Jiancai; Zhou, Yu.

In: Annals of Regional Science, Vol. 54, No. 3, 01.05.2015, p. 753-768.

Research output: Contribution to journalArticle

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