Title: The corruption factor: how public sector employees influence the tide

Authors: Richard N. LaRocca

Addresses: Wagner College, Department of Business Administration, One Campus Road, Staten Island, NY 10301, USA

Abstract: Since sources of corruption stem from, but are not limited to, the lack of transparency and accountability in the public sector, this paper sets out to examine if there is a connection between a nation's personal disposable income levels for public employees, when measured by higher personal income tax rates and lower real wage rates, and the level of public corruption found in these countries. We look at a simple contributing factor, disposable income, measured by personal income tax rates and purchasing power parity, as a primary reason for corruption in a country. The research adds to the theory of corruption knowledge in that as a developing country moves towards becoming a developed country, the components of measuring corruption change and evolve. We found that developing nations' public-sector employees place more emphasis on sociological determinants and tax rate contributions as factors contributing toward corruption, whereas developed nations place more emphasis on securing wealth from a standard of living aspect as well as from gains in equities markets.

Keywords: taxation; disposable incomes; developing nations; public sector employees; transparency; accountability; personal incomes; income levels; income tax; tax rates; taxes; real wages; wage rates; purchasing power; parity; corruption knowledge; developing countries; developed countries; corruption measurement; sociological determinants; tax contributions; wealth; living standards; financial gains; equities markets; society; systems science; economic recovery; economics; opportunities; challenges.

DOI: 10.1504/IJSSS.2012.045375

International Journal of Society Systems Science, 2012 Vol.4 No.1, pp.92 - 106

Available online: 06 Feb 2012 *

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