WiP Seminar: Marco Rosso

Abstract

This paper theorizes the relationship between corruption opportunities and self-selection in the public sector. The model we propose investigates how corruption temptation influences the choice of the sector. In our main result, the introduction of corruption opportunities in the public sector has a two-fold effect. First, corruption opportunities attract less motivated workers. Second, in the presence of self-control problems, and when the temptation is sufficiently high, corruption opportunities repel motivated workers who prefer the private sector as a consequence.