New Lenses to Assess the Dynamics of Corruption and Anti-Corruption in a Connected World

Abstract

Does Corruption Increase Inequality? Evidence from Objective Measures in Public Procurement across the EU Iva Parvanova and Alina Mungiu-Pippidi, LUISS Guido Carli This paper related to the Horizon BridgeGap research project investigates how corruption in public procurement affects social inequalities across EU countries. Unlike prior studies relying on perceptions-based measures, we use objective indicators - such as the share of single-bid tenders - from EU procurement data (2011–2022). We analyze their impact on income inequality (Gini coefficient), health inequality (life expectancy), and educational inequality (PISA science scores), employing a dynamic panel GMM estimator, while controlling for economic and institutional factors. Our results show that higher procurement corruption risks are significantly associated with increased income inequality, lower life expectancy, and worse educational outcomes. These findings remain robust across model specifications. The study underscores the importance of procedural integrity in public contracting and recommends integrating objective red-flag indicators into EU oversight frameworks to more effectively address the social consequences of corruption.

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