Empirical findings of a negative association between female participation in politics and the labor market, and levels of corruption have received great attention. We reproduce this correlation for 177 countries from 1998 to 2014. Once taking account of country-specific heterogeneity by fixed effects, the negative association disappears entirely in terms of statistical significance and magnitude. This suggests that female participation in politics and the labor market is not directly linked to lower corruption. Exploiting different dimensions of culture as country-specific characteristics, our analysis shows that power distance and masculinity systematically affect corruption. These two cultural characteristics are sufficient to fully mitigate any association between gender and corruption. Our findings point out the importance of culture and suggest that its omission causes a spurious correlation, leading to the erroneous claim that increased female participation in public life alone reduces corruption.
Gender and Corruption: A ReassessmentThis paper analyzes the relationship between gender and corruption, controlling for countryspecific heterogeneity in a panel framework. Using annual observations in a pooled setting (no country-fixed effects) confirms the positive link between the involvement of women in society and the absence of corruption. However, once country-fixed effects are acknowledged, only the share of female employers remains a positive and statistically meaningful correlate. Nevertheless, the derived magnitude is negligible in a global sample. Analyzing potential nonlinearities reveals that this effect is driven by African nations, where a one standard deviation increase in the share of female employers is related to a substantial decrease of corruption by 2.5 index points (scale from zero to ten). Surprisingly, the link between the share of women in the labor force and the absence of corruption becomes negative once country unobservables are accounted for. Taken together, these findings cast doubt on a general, global relationship between gender and corruption.
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