Individual and institutional determinants of corruption in the EU countries: the problem of its tolerance

Abstract

This paper deals with the problem of corruption, with a focus on both individual and country-specific institutional factors that may affect this problem. We analyse the determinants of the incidence of corruption as well as the tolerance of corruption. We used logit regressions that utilised data derived from Eurobarometer. The results strongly suggest gender, age, and education are important factors. We may say that anti-corruption policy ought to be targeted towards younger, less-educated, self-employed people with no children. On the other hand, a better-educated man in his early 30s seems to be a typical victim of corruption. The same is true for those having problems paying their expenses. Furthermore, contact with public officials appears to be one of the key issues, with Internet-based interactions with the government perhaps serving as the most effective solution to this problem. The rule of law, government effectiveness, and public accountability seem to be other factors that negatively correlate with the level of corruption within a country.

Appendices

Appendix 1

The representation of respondents in the sample based on the residence country. Source: Author based on the Eurobarometer 79.1 (2013)

Appendix 2

Description of socio-economic variables included in the regressions.

All data are retrieved from Eurobarometer 79.1 (2013)
Name of the variable	Description of dependent variables and their coding
Experienced corruption	In the last 12 months, have you experienced any case of corruption? Yes = 1; no = 0
Reported corruption (exclusively victims)	Did your reported experienced corruption to anyone or not? Those that reported corruption = 1 Those that did not report a case of experienced corruption or did not experience corruption in the last 12 months = 0
Corruption tolerance (recoded as follows: acceptable or tolerated = 1, unacceptable = 0)	Talking more generally, if you wanted to get something from the public administration or public services, to what extent do you think it is acceptable to do any of the following money (always acceptable = 3; sometimes acceptable = 2; never acceptable = 1): (1) to give money, (2) to give a gift, (3) to do a favour. Based on the answers to previous question the index of tolerance to corruption is calculated. (recoded to binary variable as follows: acceptable or tolerated = 1; unacceptable = 0)
Know where to report	If you were to experience or witness a case of corruption, would you know where to report it to? Yes = 1; no = 0
Education	How old were you when you stopped full-time education? (exact age)
Married	Married = 1; unmarried = 0
Gender	Male = 1; female = 0
Age	How old are you? (exact age)
Rural/urban	Would you say you live in a…? Rural area or village = 1; Small or middle sized town = 2; Large town = 3
Children	Are there any children less 14 years old living in the household? (yes = 1; no = 0)
Tv	Which of the following goods do you have?…Television (yes = 1; no = 0)
Car	Which of the following goods do you have?…Car (yes = 1; no = 0)
Problems with paying bills	During the last twelve months, would you say you had difficulties to pay your bills at the end of the month…? Most of the time (coded = 3), From time to time (=2); almost never/never (=1)
Unemployed	Did you do any paid work in the past? What is your current occupation?… Unemployed or temporarily not working (yes = 1, no = 0)
Self employed	Did you do any paid work in the past? What is your current occupation?… Self employed (yes = 1, no = 0)
Top management	Did you do any paid work in the past? What is your current occupation?… General management, director or top management (yes = 1, no = 0)
Employed professional	Did you do any paid work in the past? What is your current occupation?… Employed professional (employed doctor, lawyer, accountant, architect…) (yes = 1, no = 0)
Contact with authorities	Over the last 12 months, have you had any contact with any of the following: police, customs, tax authorities, social security and welfare authorities, public prosecution service, politicians, political parties, officials awarding public tenders, officials issuing building or business permits, health-care system, the education sector and inspectors in your country (yes = 1, no = 0)

Appendix 3

Country-specific variables included in the regressions.

Variable name	Description of dependent variables and the coding	Source
Corruption perception (the country average)	How widespread do you think the problem of corruption is in your country? We calculated the country specific means of corruption as perceived by the respondents in each country	Eurobarometer 79.1 (2013)
Internet interaction with government	Individuals using the internet for interaction with public authorities within 12 months before the survey (% of individuals aged 16–74)	Eurostat database (code: tin00013)
Tertiary education	Population with tertiary educational attainment level (% of total population)	Eurostat database (code: edat_lfse_07)
Rule of law	Rule of Law captures perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The estimate gives the country’s score on the aggregate indicator, in units of a standard normal distribution	World bank database: Worldwide Governance Indicators. http://databank.worldbank.org/data/reports.aspx?source=worldwide-governance-indicators
Government effectiveness	Government Effectiveness captures perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government’s commitment to such policies. The estimate gives the country’s score on the aggregate indicator, in units of a standard normal distribution
Public voice accountability	Public voice and Accountability captures perceptions of the extent to which a country’s citizens are able to participate in selecting their government, as well as freedom of expression, freedom of association, and a free media. The estimate gives the country’s score on the aggregate indicator, in units of a standard normal distribution
Political stability	Political Stability and Absence of Violence/Terrorism measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. The estimate gives the country’s score on the aggregate indicator, in units of a standard normal distribution