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Title: Are there wages from “sin”? Working conditions spillover from paying bribe in Vietnam
Authors: EFOBI, Uchenna
ORKOH, Emmanuel
Keywords: Bribe payment
Employees working condition
Fringe benefits
Small and medium enterprise
Issue Date: 2022
Series/Report no.: Small Business Economics;pp. 1 - 21
Abstract: This paper examines how bribe payment by enterprises in Vietnam affects employees’ working conditions, particularly wage benefits and other non-monetary compensations. We exploit the variation in the interaction of the score for the transparency of the local government in a specific province, the district-sector share of enterprises engaging in bribe payment, and the sector average size of the enterprise owner’s social network that are public officers as an exogenous variation in the likelihood of engaging in bribe payment. The results of the analysis reveal that when an enterprise pays bribe, it reduces the wages of its employees by approximately 27.6% (mostly for those within the highest wage bracket). Employees’ membership of a trade union, enterprise’ performance, capacity for inter-jurisdictional mobility, investment in human capital development, and formality status are likely operative channels of impact.
Appears in Collections:Economic development

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