Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/141867
Authors: 
Farzanegan, Mohammad Reza
Witthuhn, Stefan
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper 5890
Abstract: 
This study shows that the relative size of the youth bulge matters for how corruption affects the internal stability of a political system. We argue that corruption cannot buy political stability (e.g., the greasing hypothesis) in countries with a relatively large youth population. Using panel data covering the 2002-2012 period for more than 100 countries, we find a negative interaction effect between the relative size of the youth population and corruption on internal political stability. Corruption is a destabilizing factor for political systems when the share of the youth population in the adult population exceeds a threshold level of approximately 19%. The negative interaction term is robust, controlling for country and year fixed effects, a set of control variables that may affect internal political stability, an alternative operationalization of youth bulge, and a dynamic panel estimation method.
Subjects: 
demographic transition
youth bulge
political stability
corruption
JEL: 
D73
D74
E02
H56
J11
Document Type: 
Working Paper

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