Abstract:The aim of this study is to estimate the impact of bribery on the wage performance of formal firms.
Setting:The empirical assessment uses a unique firm-level data set comprising 1141 Nigerian manufacturing firms, some of whom paid bribes to corrupt bureaucrats.
Methods:The study utilised a standard ordinary least-squares estimation technique. To address the potential endogeneity and measurement error bias arising from bribery, we used industry-location average bribe rate as instrument.Results: We find a signif… Show more
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