Lobbying and Corruption Dr James Tremewan (james.tremewan@univie.ac.at) Gender and Corruption
Introduction Gender and Corruption • Women are often perceived as less susceptable to corruption than men. • In Mexico City traffic officers all women, in attempt to reduce bribe demands. • Similar scheme in Lima (http://www.americasquarterly.org/node/2802) 2/33
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Introduction Gender and Corruption: cross-country regressions • Greater female influence is associated with lower levels of corruption: • “Are women really the fairer sex? Corruption and women in government”, Dollar et al (2001): • Proportion of women in parliament negatively correlated with a number of corruption measures. • Around 90 countries and three years (1985, 1990, 1995). • Correlation remains after controlling for a number of variables (e.g. civil liberties, legal origin). • “Gender and Corruption”, Swamy et al. (2001): • A variety of corruption measures are negatively correlated with proportion of women in parliament, in government ministerial positions, and the labour force in general. • Correlation survives similar controls as Dollar et al (2001). 4/33
Introduction Gender and Corruption: cross-country regressions • But will increasing gender-equity reduce corruption? Correlation is not causation!: • Reverse causality: in corrupt countries, male-dominated networks may provide greater barrier to female participation. • Omitted variable: both corruption and gender-inequity may be caused by third variable. • “Fairer sex or fairer system? Gender and corruption revisited”, Sung (2003): • Similar exercise to the two earlier papers. • Finds that relationship between gender-equity and corruption disappears after controlling for “liberal democracy” variable. • “In sum, liberal democratic insttitutions and spirit increase female participation in government and restrain systemic corruption, but the latter two factors are not causally related.” 5/33
Introduction Gender and Corruption: WVS (63 countries) 6/33
Introduction Gender and Corruption: survey data • Swamy et al (2001) analyze data from the World Values Survey. • Women say they are less tolerant of corrupt behaviour than men. • Significant difference remains after controlling for a number of variables. • (Less likely to be a gender difference in developing countries). • Criticisms: • Men and women may have different experiences of corruption depending on social role: • Higher exposure to corruption in daily life may increase tolerance. • Greater victimization by corruption may decrease tolerance. • Attitudes towards corruption may not fully determine propensity to act corruptly (maybe gender difference in relationship between attitudes and behaviours?). • No incentive to tell the truth: women may have different need to maintain social or self-image when answering survey. 7/33
Introduction Gender and Corruption: experiments • Experiments can overcome problems with empirical and survey data. • Causality can be identified by placing males and females in identical environments. • Equalizes opportunity to act corruptly. • Can study behaviour with real consequences rather than just attitudes. • Financial incentives encourage genuine responses. 8/33
Introduction Gender and Corruption: experiments • We will look at three experiments related to gender and corruption. • “An Experiment on Corruption and Gender”, Rivas (2012). • Finds lower rates of corrupt behaviour among females in Barcelona. • “Gender, Culture, and Corruption: Insights from an Experimental Analysis”, Alatas et al (2009). • Finds lower rates of corrupt behaviour among females in Australia, but not India, Indonesia, or Singapore. • “Deterrence versus intrinsic motivation: Experimental evidence on the determinants of corruptibility”, Schulze and Frank (2003). • Examines whether lower rates of corrupt behaviour by females can be explained by greater risk-aversion rather than different attitudes towards corruption. 9/33
Introduction Rivas (2012) • Same game as Abbink (2004) (see previous set of slides). • Neutral framing. • Firm can offer bribe to Public Official. • Public Official can accept or reject bribe, then decides whether to select policy A or B: • A is socially efficient. • B give the Firm a higher payoff, but creates costs for all other subjects in the experiment. • If a corrupt transaction takes place, there is a small probability the Firm and Public Official are caught and lose all their earnings. • Four treatments: Male Firm and Male PO; Male Firm and Female PO; Female Firm and Male PO; Female Firm and Male PO ( subjects know the gender of their partner ). 10/33
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Introduction Conclusions • Females are less likely to offer bribes, and offer lower bribes on average. • Females are less likely to accept bribes even after controlling for the size of the bribes . • This effect is stronger for Female/Female pairs. • Females are less likely to reciprocate a bribe and choose the socially inefficient option even after controlling for the size of the bribes .. • Social costs are significantly lower (average earnings higher) for Female/Female pairs than for Male/Male pairs. 17/33
Introduction Alatas et al (2009) • Three player game: • Firm chooses whether or not to offer a bribe. • If a bribe is offered, Official decides whether to accept or reject. • If a bribe is offered and accepted, it damages a Citizen, who can choose whether or not to punish the Firm and Official (at some cost to themselves). • Subgame perfect equilibrium: Bribe is offered and accepted and the Citizen does not Punish. • The experiment was run in Australia, India, Indonesia, and Singapore using Corruption framing (also run in Australia with neutral framing). 18/33
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Introduction Conclusions • Females were less likely to offer or accept bribes, and more likely to punish corruption, but only in Australia . • In Australia, the gender difference almost disappears with neutral framing, suggesting that the gender effect is due to differences in attitudes towards corruption, rather than simply differences in general social preferences or risk aversion. • Strong gender differences in corruption experiments found only in developed wester countries where (petty) corruption is not such a big issue (Waithima (2010) uses a similar design in Kenya and also finds no gender effect). 22/33
Introduction Shulze and Frank (2003) • Experiment run before a screening of a film, organised by a students’ film club. • Experiment 1: Subjects told to imagine that a 200 German Mark bank note (about e 100) has fallen down a drain-pipe and cannot be retrieved without a plumber. The subject must select on behalf of the film club amongst plumbers, who may be willing to pay the subject in exchange for getting chosen. • The cost to the film club for each plumber, and the “kickback” each plumber offers is shown on the next slide. 23/33
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Introduction Shulze and Frank (2003) • Subjects had to fill out a form stating their decision (and some other information). • About half the subjects were told they would receive an extra 40 Marks regardless of their decision (to test for the effect of an increase in wage on corrupt behaviour: see first set of slides from this course). • One subject was randomly chosen and paid (confidentially) according to their decision. • Experiment 2: The same as Experiment 1, but now there is a possibility of getting caught and earning nothing (losing also the extra 40 Marks for those subjects for whom it was available): see next slide for choices. 25/33
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Introduction Shulze and Frank (2003): Conclusions • There is no gender difference in the risk-free context. • When there was a risk of detection and punishment, females were less corrupt. • Greater risk aversion apears to play a role in gender differences in corrupt behaviour. 29/33
Introduction Gender and Corruption: Conclusions • Females have been found less likely to act corruptly in laboratory experiments. • Strong gender differences have been found mostly in Western countries. • Greater risk aversion apears to play a role in gender differences in corrupt behaviour, but there is also evidence that females sometimes have less favourable attitudes towards corruption. • There has been no study finding men to be less corrupt, so increasing the proportion of women in bureacracy and government can be recommended as having, at worst, no increase corruption (also for pure gender equity reasons). 30/33
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