Abstract
Corruption in the education sector is pervasive in many (developing) countries. We examine two interventions to fight corruption in education. The first is an increase of the fixed-wage of teachers. The second is the introduction of a piece-rate scheme that rewards teachers according to the number of students that they attract. We model these mechanisms and conduct a lab experiment in Colombia, a country riddled with corruption. After creating a culture of corruption, we introduce either intervention. The increase of the fixed-wage does not diminish bribery. The piece-rate scheme substantially reduces but does not eliminate bribery.
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