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The Dynamics of Corruption and Unemployment in a Growth Model with Heterogeneous Labour

King Yoong Lim

No 198144263, Working Papers from Lancaster University Management School, Economics Department

Abstract: This paper presents an overlapping generations growth model with heterogeneous labour, endogenous unemployment, and public sector corruption. Unlike most previous studies, the model does not separate public officials and private individuals into two distinct groups. Instead, taking up bureaucratic appointment as a public servant is modelled as an occupational choice, which then allows for the endogenous determination of the proportion of public o¢fficials, the share of corrupt officials among them, and the public investment efficiency of the economy within the dynamic system. Parameterised for Nigeria, the dynamics of endogenous corruption and unemployment, as well as their policy tradeoff, are studied using numerical policy experiments based on relevant themes in the country, which include public sector downsizing and social intervention schemes.

Keywords: Economic Growth; Corruption; Nigeria; Public Sector Efficiency; Unemployment (search for similar items in EconPapers)
JEL-codes: H30 H54 O41 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cta and nep-dge
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Modelling the dynamics of corruption and unemployment with heterogeneous labour (2019) Downloads
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