Not all informal payments are bad

Instrumental variable investigation of the effect of sand-the-wheels, cultural norm, and grease-the-wheels types of payments on life satisfaction

Datos Bibliográficos

ID22203977
AutoresNazim Habibov (0000-0003-3862-4348, University of Windsor, autor de correspondencia), Alena Auchynnikava (0000-0002-2637-5471, University of Windsor)
Año2025
Volumen11
Páginas101239
Fecha de publicación2025-01-01
Open AccessSí
TipoARTICLE
RevistaSocial Sciences & Humanities Open (JOURNAL)
Identificadores de la revistaISSN: 2590-2911 • E-ISSN: 2590-2911
EditorialElsevier BV (PUBLISHER)
DOI10.1016/j.ssaho.2024.101239
OpenAlexW4404873866
IdiomaEN
Referencias citadas44

In this study, we investigate the effect of making different types of informal payments in public services on life satisfaction. We theorize that the effect of different informal payments on life satisfaction is not universally negative. Specifically, we hypothesize that the direction of the effect depends on the specific type of motivation for making such payments. As such, we articulate three hypotheses on the effect of specific motivations for making informal payments on life satisfaction. Hypothesis 1 postulates that “sand-the-wheels” payments reduce life satisfaction. Hypothesis 2 posits that “cultural norm” payments improve life satisfaction. Hypothesis 3 proposes that “grease-the-wheels” payments improve life satisfaction. We tested these hypotheses on a large sample of 29 diverse countries in Eastern Europe and the former Soviet Union using the quasi-experimental two-stage IV technique and one-stage classic OLS regression. Hypotheses 1 and 2 are confirmed by both IV and OLS. Conversely, Hypothesis 3 cannot be confirmed by either IV or OLS. We conclude that focusing on informal payments in general, rather than on evaluating specific motivations for making them masks the true outcomes of making such payments. Hence, while designing, implementing, and studying anti-corruption policies, decision-makers and researchers should distinguish between different motivations for making informal payments

Composite material · Econometrics · Economics · Grease · Instrumental variable · Mathematical analysis · Microeconomics · Payment · Political science · COVID-19 Pandemic Impacts · Law · Materials Science · Mathematics · Psychological Well-being and Life Satisfaction · Psychology · Social Psychology · Taxation and Compliance Studies · Finance