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Does corruption increase or decrease employment in firms?

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  • Arlette Beltrán

Abstract

We use representative data for firms for Latin American firms and show that corruption decreases employment in firms. This result is robust to changes in specification and also consistent with the use of an instrumental variables approach. Corruption appears to negatively impact the growth and wealth in a country, not by introducing labour distortion in firms, but by keeping them small.

Suggested Citation

  • Arlette Beltrán, 2016. "Does corruption increase or decrease employment in firms?," Applied Economics Letters, Taylor & Francis Journals, vol. 23(5), pages 361-364, March.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:5:p:361-364
    DOI: 10.1080/13504851.2015.1076137
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    Cited by:

    1. Yakira Fernández-Torres & Milagros Gutiérrez-Fernández & Julián Ramajo-Hernández, 2018. "Business Regulation And Economic Growth: The Indirect Effect Of Corruption In Latin America And The Caribbean," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-22, March.
    2. Proikaki, Marina & Nikolaou, Ioannis & Jones, Nikoleta & Malesios, Chrisovaladis & Dimitrakopoulos, Panayiotis G & Evangelinos, Kostantinos, 2018. "Community perceptions of local enterprises in environmentally degraded areas," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 73(C), pages 116-124.
    3. Luca J. Uberti, 2020. "Bribes, Rents and Industrial Firm Performance in Albania and Kosovo," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 62(2), pages 263-302, June.
    4. Jean Francky Landry Ngono, 2023. "Corrupting Politicians to Get Out of Unemployment: Empirical Evidence from Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1004-1032, June.
    5. Samer Matta, 2017. "The Microeconomic Impact of Political Instability: Firm-Level Evidence from Tunisia," Working Papers 1135, Economic Research Forum, revised 09 Jul 2017.

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