Dynamic Relationship between Corruption and Youth Unemployment : Empirical Evidences from a System GMM Approach
This paper addresses the causal relationship between corruption and youth unemployment from two different perspectives. The discussion starts by asking how the corruption practices within government institutions that encourage the payment of bribes...
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/09/26825071/dynamic-relationship-between-corruption-youth-unemployment-empirical-evidences-system-gmm-approach http://hdl.handle.net/10986/25158 |
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okr-10986-251582021-04-23T14:04:29Z Dynamic Relationship between Corruption and Youth Unemployment : Empirical Evidences from a System GMM Approach Bouzid, Bechir N. youth employment corruption labor market developing countries This paper addresses the causal relationship between corruption and youth unemployment from two different perspectives. The discussion starts by asking how the corruption practices within government institutions that encourage the payment of bribes to access the job opportunities contribute to reducing the efficiency of the resources (labor force) allocations. The resources are diverted from the most productive economic sectors toward those (usually less efficient economic sectors) where self-motivated officials have more discretionary power in selecting the candidates who are less qualified for the job. The challenge is to examine how bribed bureaucrats are more concerned by their own personal interests at the expense of national welfare when positively reacting to the highest bribe payers. Second question addressed is why the resulting mismatching between supply and demand in the labor market tends to sustain its underlying causes (i.e., bribes) by giving more incentive to new agents and economic actors to adopt these practices. Using a system GMM approach that simultaneously account for the dynamic effect between perceived bribery among officials and the youth unemployment rates, the paper finds that, after controlling for various macroeconomic and institutional factors, the development of corruption practices tend to increase the unemployment rate among youth and educated job seekers which in turn contribute to sustain those unlawful practices by forcing the latter to bribe rent seeking government officials in order to secure a job. 2016-10-13T21:05:19Z 2016-10-13T21:05:19Z 2016-09 Working Paper http://documents.worldbank.org/curated/en/2016/09/26825071/dynamic-relationship-between-corruption-youth-unemployment-empirical-evidences-system-gmm-approach http://hdl.handle.net/10986/25158 English en_US Policy Research Working Paper;No. 7842 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
youth employment corruption labor market developing countries |
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youth employment corruption labor market developing countries Bouzid, Bechir N. Dynamic Relationship between Corruption and Youth Unemployment : Empirical Evidences from a System GMM Approach |
| relation |
Policy Research Working Paper;No. 7842 |
| description |
This paper addresses the causal
relationship between corruption and youth unemployment from
two different perspectives. The discussion starts by asking
how the corruption practices within government institutions
that encourage the payment of bribes to access the job
opportunities contribute to reducing the efficiency of the
resources (labor force) allocations. The resources are
diverted from the most productive economic sectors toward
those (usually less efficient economic sectors) where
self-motivated officials have more discretionary power in
selecting the candidates who are less qualified for the job.
The challenge is to examine how bribed bureaucrats are more
concerned by their own personal interests at the expense of
national welfare when positively reacting to the highest
bribe payers. Second question addressed is why the resulting
mismatching between supply and demand in the labor market
tends to sustain its underlying causes (i.e., bribes) by
giving more incentive to new agents and economic actors to
adopt these practices. Using a system GMM approach that
simultaneously account for the dynamic effect between
perceived bribery among officials and the youth unemployment
rates, the paper finds that, after controlling for various
macroeconomic and institutional factors, the development of
corruption practices tend to increase the unemployment rate
among youth and educated job seekers which in turn
contribute to sustain those unlawful practices by forcing
the latter to bribe rent seeking government officials in
order to secure a job. |
| format |
Working Paper |
| author |
Bouzid, Bechir N. |
| author_facet |
Bouzid, Bechir N. |
| author_sort |
Bouzid, Bechir N. |
| title |
Dynamic Relationship between Corruption and Youth Unemployment : Empirical Evidences from a System GMM Approach |
| title_short |
Dynamic Relationship between Corruption and Youth Unemployment : Empirical Evidences from a System GMM Approach |
| title_full |
Dynamic Relationship between Corruption and Youth Unemployment : Empirical Evidences from a System GMM Approach |
| title_fullStr |
Dynamic Relationship between Corruption and Youth Unemployment : Empirical Evidences from a System GMM Approach |
| title_full_unstemmed |
Dynamic Relationship between Corruption and Youth Unemployment : Empirical Evidences from a System GMM Approach |
| title_sort |
dynamic relationship between corruption and youth unemployment : empirical evidences from a system gmm approach |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/09/26825071/dynamic-relationship-between-corruption-youth-unemployment-empirical-evidences-system-gmm-approach http://hdl.handle.net/10986/25158 |
| _version_ |
1764458698346856448 |