15:00 - 16:40
P4-S82
Room: -1.A.04
Chair/s:
Sergi Urzay-Gómez
Discussant/s:
Felix Hartmann
Electronic Payroll System and Intra-Civil Service Corruption: Evidence from the Democratic Republic of Congo
P4-S82-2
Presented by: Dongil Lee
Narcisse Cha’ngom 1Dongil Lee 2, Eric Mvukiyehe 3, Christelle Tchoupé 4
1 Luxembourg Institute of Socio-Economic Research (LISER)
2 KDI School of Public Policy and Management
3 Duke University
4 Centre d'Études et de Recherches sur le Développement International (CEDRI)
This study provides the first empirical evidence documenting intra-civil service corruption in developing countries. This form of corruption is defined as financial leakage within the payroll system, where salaries for low-ranking civil servants are diverted through practices such as unauthorized deductions, bribery, and wage misappropriation. Drawing on a nationally representative survey of 2,200 civil servants in the Democratic Republic of Congo (DRC), we find that 36% of respondents reported experiencing at least one form of payroll misconduct. Using nighttime light density as both a proxy for financial service access and an instrument for system enrollment, we find that the introduction of an electronic payroll system reduced payroll corruption by over one-third, with stronger effects—up to 51%—in sectors with initially high corruption levels. These results highlight the potential of e-governance reforms to improve transparency and accountability within government structures, reduce exploitation of frontline workers, and enhance public service delivery.
Keywords: Corruption, E-governance, Public sector accountability, Financial leakage, State capacity

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