C ORRUPTION IN A MERICA by Edward
نویسنده
چکیده
We use a data set of federal corruption convictions in the U.S. to investigate the causes and consequences of corruption. More educated states, and to a less degree richer states, have less corruption. This relationship holds even when we use historical factors like education in 1928 or Congregationalism in 1890, as instruments for the level of schooling today. The level of corruption is weakly correlated with the level of income inequality and racial fractionalization, and uncorrelated with the size of government. There is a weak negative relationship between corruption and employment and income growth. These results echo the cross-country findings, and support the view that the correlation between development and good political outcomes occurs because more education improves political institutions. * Both authors thank the Taubman Center for State and Local Government for financial support. Conversations with Claudia Goldin and Andrei Shleifer helped form our understanding of this topic. We thank Claudia Goldin and Robert McCormick for kindly providing data on education and economic freedom across states.
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