The Effect of Supervisor Collusion on the Spread of Corruption

Work in Progress (with Aimable A. Lameke, Albert Malukisa Nkuku, Kristof Titeca and Raul Sanchez de la Sierra)

Abstract

This paper analyzes Kinshasa’s traffic police agency to examine the role of supervisor collusion on the pervasiveness of corruption. First, we show that supervisor collusion can explain a 54-fold increase in the government ``efficiency wage’’ that would deter cheating by the agents. Second, the supervisors are motivated not just by their own income, but also by redistribution of unofficial income between their agents. Vertical and horizontal redistribution of unofficial income is fueled by supervisor collusion.