Oktober 2014

IZA DP No. 8521: Emigration, Remittances and Corruption Experience of Those Staying Behind

published as "Does emigration reduce corruption?" in: Public Choice, 2017, 171 (3-4), 389–408

We examine the effects of emigration and remittances on the corruption experience of migrant household members staying in the countries of origin. We hypothesize that the effects of emigration on corruption can be both positive (via migrant value transfer) and negative (via misuse of monetary remittances). Using Gallup Balkan Monitor survey data in instrumental variable analysis, we find that migrant households are more likely to face bribe situations and be asked for bribes by public officials. At the same time, having relatives abroad reduces the probability of actually paying a bribe. This beneficial effect is offset by receiving monetary remittances.