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Department of Economics, Uppsala University Working Paper Series, Uppsala Center for Labor Studies, Department of Economics, Uppsala University

No 2015:1:
Fighting Corruption in Education: What Works and Who Benefits?

Oana B orcan (), Mikael Lindahl () and Andreea Mitrut ()

Abstract: We investigate the efficiency and distributional consequences of a corruptionfighting initiative in Romania targeting the endemic fraud in a high-stakes high school exit exam, which introduced CCTV monitoring of the exam and credible punishment threats. We find that punishment coupled with monitoring was effective in reducing corruption. Estimating the heterogeneous impact for students of different ability, poverty status, and gender, we show that fighting corruption led to efficiency gains (ability predicts exam outcomes better) but also to a worrisome score gap increase between poor and non-poor students. Consequently, the poor students have reduced chances to enter an elite university.

Keywords: corruption; high-stakes exam; bribes; monitoring and punishment; (follow links to similar papers)

JEL-Codes: I21; I24; K42; (follow links to similar papers)

54 pages, February 13, 2015

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