Program > Papers by speaker > Toews Gerhard

Monday 12
A8 - Illegal behavior, Corruption & Crime
Chair: Rafael Ribas
› 10:40 - 11:05 (25min)
› Room 103 - B. Martinu
Corruption: The long shadow of the Gulag
Gerhard Toews  1@  , Pierre-Louis Vezina  2, *@  
1 : University of Oxford (UK)
2 : King's College London
* : Corresponding author

We study the long-run effect of the Gulag system on corruption in the countries of

the ex-Soviet Union and in so doing provide insights into the transmission mechanisms

of cultural norms. We hypothesize that the system of forced labour camps created

in the 1930s had a lasting effect on corruption as it involved the traumatic and

quasi-permanent relocation of over 6 million anti-regime intellectuals to highly-corrupt

environments. We find that firms and households located within 10km of a Gulag are

less likely to report that informal payments are necessary to get things done, and this

effect is entirely driven by firms active in the same industry as the nearby Gulag was.

Our results thus suggest that anti-corruption norms may have been transmitted within

industries within Gulags.

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