Inderscience Publishers

Inderscience Publishers

The corruption factor: how public sector employees influence the tide

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Courtesy of Inderscience Publishers

Since sources of corruption stem from, but are not limited to, the lack of transparency and accountability in the public sector, this paper sets out to examine if there is a connection between a nation's personal disposable income levels for public employees, when measured by higher personal income tax rates and lower real wage rates, and the level of public corruption found in these countries. We look at a simple contributing factor, disposable income, measured by personal income tax rates and purchasing power parity, as a primary reason for corruption in a country. The research adds to the theory of corruption knowledge in that as a developing country moves towards becoming a developed country, the components of measuring corruption change and evolve. We found that developing nations' public-sector employees place more emphasis on sociological determinants and tax rate contributions as factors contributing toward corruption, whereas developed nations place more emphasis on securing wealth from a standard of living aspect as well as from gains in equities markets.

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