Awareness of Corruption and Attitudes Toward Socio-Economic Inequality: Experimental Evidence from Lithuania, Hungary, and Moldova
P11-S272-4
Presented by: Denis Ivanov
Corruption, defined as the abuse of entrusted power for private gain, poses a significant barrier to human prosperity. Beyond its staggering economic implications, with losses estimated between US$1.5 to US$2 trillion (roughly 2 percent of global GDP). Similarly, high levels of inequality—whether rooted in income, wealth or opportunity—are detrimental and often linked to conflict, political disparity, and diminished quality of life. Despite the prominence and policy relevance of these issues, their interconnection remains unclear. While the literature has grown in recent years, it has predominantly used aggregates and focused mostly on correlational evidence at the cross-country level. This paper provides the first experimental and causal evidence testing the hypothesis that being informed about a situation of corruption within a country causes people to overestimate the magnitude of socio-economic inequality. I am in the process of conducting three pre-registered face-to-face vignette survey experiments (n=1000 in each country) on a representative national omnibus-type sample in three countries: Lithuania, Hungary, and Moldova. Half of the respondents were exposed to a short vignette that includes three dimensions: global ranking, survey evidence, and policy efforts. This treatment is based on excerpts from annual reports on corruption by Transparency International, as well as on corruption perceptions from the Global Corruption Barometer and EU reports on progress in the fight against corruption. I theorize that exposure to a corruption situation in a particular country, on average, causes a one standard deviation increase in responses to questions related to the inequality of wealth, income, rural-urban divide, and opportunities.
Keywords: corruption, socio-economic inequality, experiment