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Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/231295
The Effect of Income Inequality on Corruption within EU Regions
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This thesis examines the nexus between income inequality and corruption across European NUTS-2 regions, addressing the limitations of national-level aggregates that often mask regional heterogeneity. Utilising data from the European Quality of Government Index (2017–2024), it is investigated how local income disparities, measured by the S80/S20 ratio, shape institutional quality. To overcome the endogeneity inherent in the inequality-corruption cycle, an instrumental variable strategy is employed using an innovation-driven Bartik shifter. By interacting 1995 regional employment shares with exogenous US R&D intensity shocks, wage polarisation driven by skill-biased technological change is isolated. While baseline estimates align with the ‘elite capture’ hypothesis, IV results reveal a paradoxical divergent effect, where innovation-driven inequality significantly mitigates both the perception and experience of corruption. Specifically, a one-unit increase in the innovation-driven S80/S20 ratio leads to a 1.93-unit decrease in experienced corruption. These findings suggest that innovative sectors disrupt traditional rent-seeking networks and meritocratises local power structures.
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Treballs Finals del Màster d'Economia, Facultat d'Economia i Empresa, Universitat de Barcelona. Curs: 2025-2026, Tutor: Enrique López-Bazo y Vicente Royuela
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RIEDEL ENRÍQUEZ, Monica. The Effect of Income Inequality on Corruption within EU Regions. [consulted: 29 of October of 2026]. Available at: https://hdl.handle.net/2445/231295