Borcan, Oana; Lindahl, Mikael; Mitrut, Andreea - In: Journal of Public Economics 120 (2014) C, pp. 32-47
This paper aims to understand how corruption responds to an income loss. We exploit an unexpected 25% wage cut incurred in 2010 by all Romanian public sector employees, including the public education staff. We investigate a corruptible high-stake exam taking place shortly after the wage...