Corruption in Russia

Abstract

We analyze the determinants of corruption in Russia using law enforcement data on corruption incidents for a panel of 79 Russian regions for the period 2004–13. We find that the relative salaries of bureaucrats determine corruption levels: corruption declines as relative salaries rise, yet at strongly diminishing rates. Furthermore, we show that even very limited media freedom helps to curtail corruption. Other important determinants are the strength of law enforcement, education levels, and unemployment rates.