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Isolating causality between gender and corruption: An IV approach

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  • Wendy Correa Martínez
  • Michael Jetter

Abstract

We address the persistent reverse causality problem in estimating the causal effect of female labor force participation (FLFP) on corruption. Employing plow usage as an instrumental variable, an increase in FLFP by one standard deviation is suggested to improve the Corruption Perceptions Index (CPI, ranging from zero to ten) by 0.52 points. This effect is stronger than a one standard deviation change of education levels, government size, or ethnic fractionalization.

Suggested Citation

  • Wendy Correa Martínez & Michael Jetter, 2016. "Isolating causality between gender and corruption: An IV approach," Documentos de Trabajo de Valor Público 14438, Universidad EAFIT.
    • Handle: RePEc:col:000122:014438
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    File URL: http://hdl.handle.net/10784/8209
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    References listed on IDEAS

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    1. Swamy, Anand & Knack, Stephen & Lee, Young & Azfar, Omar, 2001. "Gender and corruption," Journal of Development Economics, Elsevier, vol. 64(1), pages 25-55, February.
    2. Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July.
    3. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    4. Danila Serra, 2006. "Empirical determinants of corruption: A sensitivity analysis," Public Choice, Springer, vol. 126(1), pages 225-256, January.
    5. Alberto Alesina & Paola Giuliano & Nathan Nunn, 2013. "On the Origins of Gender Roles: Women and the Plough," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(2), pages 469-530.
    6. Dollar, David & Fisman, Raymond & Gatti, Roberta, 2001. "Are women really the "fairer" sex? Corruption and women in government," Journal of Economic Behavior & Organization, Elsevier, vol. 46(4), pages 423-429, December.
    7. Leandro M. Magnusson, 2010. "Inference in limited dependent variable models robust to weak identification," Econometrics Journal, Royal Economic Society, vol. 13(3), pages 56-79, October.
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    Cited by:

    1. Monika Bauhr & Nicholas Charron, 2020. "Do Men and Women Perceive Corruption Differently? Gender Differences in Perception of Need and Greed Corruption," Politics and Governance, Cogitatio Press, vol. 8(2), pages 92-102.

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    More about this item

    Keywords

    Corruption; Gender;

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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