The paper uses a new country-level, panel data set to study the effect of public sector wages on corruption. The …-corruption policies. Increasing the wages of public officials could help reduce corruption in countries with low public sector wage … inequality. In countries where public sector wages are highly unequal, however, raising the wages of government employees could …

of New South Wales (the commission), when dealing with public sector wages claims, to give effect to certain aspects of … employees. At the heart of the policy — aimed at reducing the state's ‘wages bill' — is a requirement that any increases to … employee-related expenses above a 2.5% per annum ‘cap', including wages and conditions of employment, must be offset by …