Three essays on corruption

This thesis is a study on corruption from an economics perspective. Corruption is defined as the misuse of power in public office for private gain. Unfortunately, its obscure nature makes it difficult to identify and fight it. The thesis’ aim is to increase our understanding of its mechanics and help toward this direction. In particular, it consists of three different studies, which focus on the causes of corruption, its consequences and measurement. The first section investigates whether political leaders are empirically associated with governance, one of its constituent elements being corruption. The results show that leaders do matter for bureaucratic quality and the rule of law, especially in autocratic regimes. Corruption does not seem to be affected by leaders though, which is an outcome probably driven by the data inadequacies and the inherent features of malfeasance. The second part elaborates on corruption as a driving force behind a salient feature of demographic transition. This is the dilemma that parents face whether to improve their children’s education or increase the size of their families. Corruption can affect their decision since it impedes the provision of public services important for the development of human capital. The model shows that higher levels of corruption increase fertility, diminish human capital and lower growth. Additionally, the model offers an explanation for the empirical observation of volatile fertility rates. Finally, the last study explores the measurement of malfeasance. Initially, a new dataset is built including measures of perceived corruption along with survey questions. A sample of 10 measures is chosen taking into consideration their nature and reliability. An advanced statistical model is applied to this sample in order to construct a new index of corruption, whose scores are accompanied by their measurement errors as well. The strength of the new index is its ability to combine the knowledge of numerous scholars and analysts who examine corruption. In addition, the model is equipped with tools that make feasible the comparison of the constituent measures’ different levels and reliability on the same underlying scale

Student academic performance and professional training year

This paper studies the relationship between students’ academic performance and the likelihood of attaining work experience as part of their undergraduate studies. The econometric analysis based on a sample of students from the School of Economics at the University of Surrey shows that the average of first-year marks is positively associated with subsequently securing a placement year. The mean predicted probability of obtaining a placement position is approximately 50% if a student's average first-year grade is 50, and the probability rises to 67% and 80% if the student achieves an average first-year grade of 60 and 70, respectively. Other relevant factors that affect the likelihood of securing a placement year are the course of study, the student's nationality and ethnic group. On the other hand, school type and A-level grades in mathematics or in economics have no effect on the chance of securing a placement year

Determinants of students’ salaries in the professional training year

This paper studies the main determinants of salaries for economics students in their year-long industrial placements. Using three different sources of data on three cohorts of economics placement students, including demographic characteristics, academic performance, programme of studies and employability-related characteristics, we find that academic performance, job location and industry type are the main determinants of placement salaries. We show not only that students’ academic performance can increase the returns of the placement year due to the possibility of high salaries, but such returns significantly increase at the top of the salary distribution. Students’ previous job experience also matters for high-paying placements. Conversely, demographic characteristics, such as age, nationality and ethnic background, do not appear to determine placement salaries. Finally, we find no evidence of gender differences in wages

Corruption, Fertility, and Human Capital

We build an overlapping generations model in which reproductive households face a child quantity/child quality trade-off and bureaucrats are delegated with the task of delivering public services that support the accumulation of human capital. By integrating the theoretical analyses of endogenous growth, corruption and fertility choices, we offer a novel mechanism on the driving forces behind demographic transition. In particular, we attribute it to the endogenous change in the incidence of bureaucratic corruption that occurs at different stages of an economy‟s transition towards higher economic development

Enhancing graduate employability skills and student engagement through group video assessment

Universities are under increasing pressure to equip graduates with a broader set of competencies, such as communication, teamwork and leadership skills, that go beyond subject-specific knowledge. This, alongside growing student numbers in higher education, creates pedagogic challenges, especially with regards to assessment design. Conventional assessment modalities, such as individual essay writing, are costly to scale up and poorly suited for the development of further desired competencies. To address these challenges in the context of a first-year economics module, we replaced a 1,000-word individual written assignment with a group video assignment, where students were required to work in small teams to create a three-minute video on a contemporary economic issue. Focus groups and module evaluation questionnaires were used to elicit students’ perceptions of how the group video assessment contributed to their learning experience and skill development, how it compares with other modes of assessment, as well as suggestions for improved implementation. Our analysis generates insights on all these aspects. Students reported a preference for diversity in assessment methods, and found the video assignment to be a positive, engaging but also challenging experience, which provided the opportunity for collaboration and development of diverse skills

Corruption, fertility, and human capital

We build an overlapping generations model in which reproductive households face a child quantity–child quality trade-off and bureaucrats are delegated with the task of delivering public services that support the accumulation of human capital. By integrating the theoretical analyses of endogenous growth, corruption and fertility choices, we show that the negative relation between fertility and economic development may also be affected by differences in the magnitude of bureaucratic corruption