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Corruption and mental health

Author

Listed:
  • Smriti Sharma
  • Saurabh Singhal
  • Finn Tarp

Abstract

While there is substantial corruption in developing countries, the costs imposed by corruption on individuals and households are little understood. This study examines the relationship between exposure to local corruption and mental health, as measured by depressive symptoms. We use two large data sets - one cross-sectional and one panel - collected across rural Vietnam. After controlling for individual and regional characteristics, we find strong and consistent evidence that day-to-day petty corruption is positively associated with psychological distress. Our results are robust to a variety of specification checks. Further, we find that the relationship between corruption and mental health is stronger for women, and that there are no heterogeneous effects by poverty status. Finally, using a difference-in-difference estimation strategy, we provide suggestive evidence that a recent highly proled anti-corruption campaign had significant positive effects on mental health. Overall, our findings suggest that there may be substantial psychosocial and mental health benefits from efforts to reduce corruption and improve rural governance structures.

Suggested Citation

  • Smriti Sharma & Saurabh Singhal & Finn Tarp, 2020. "Corruption and mental health," Working Papers 296967914, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:296967914
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    References listed on IDEAS

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    More about this item

    Keywords

    Corruption; mental health; depression; Vietnam;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions

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