This study empirically explores the following issue: Does corruption fuel conspicuous consumption? It examines the existence and magnitude of any potential corruption-effect on conspicuous consumption expenditure. Regression analyses of an unbalanced panel data for 20 OECD countries between 2004 and 2010 indicate that luxury car sales are higher by 191 per cent in a country with a high perceived corruption level, for example, CPI score of 4.5, as compared to a country with a low perceived corruption level, for example, CPI score of 9.0, ceteris paribus. JEL Classification: D12; D73
We examine how the rising interprovincial migration of individuals with diverse educational backgrounds affected human capital formation in China in the 1990s. We find that gross outflow migration of those with higher and lower levels of education, respectively, has human capital incentive and disincentive effects. Our estimates suggest that the incentive effect eclipses the disincentive effect in general; however, a surge of migration, particularly among less educated groups, implies more of a disincentive effect in China in the 1990s. We also find that changes in the relative labor supply resulting from net outflow migration mitigate a direct brain drain by both encouraging and discouraging school enrolments.
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