Brandon Parsons Explores Corruption and Informality in Sub-Saharan Africa in Journal of Policy Modeling

Brandon Parsons, assistant professor of economics at the Pepperdine Graziadio Business School, has published new research in the Journal of Policy Modeling examining the complex relationship between corruption, informal economies, and income inequality across Sub-Saharan Africa. Analyzing data from 26 countries over nearly three decades, Parsons investigates how systemic corruption and non-formal labor dynamics shape income distribution among vulnerable populations.

The study finds that while both corruption and informality independently drive higher overall income inequality, their interaction can produce a surprising moderating effect in highly corrupt environments. In contexts with weak formal institutions, the informal economy often serves as a critical safety net, diffusing economic activity beyond elite circles and providing alternative livelihoods for marginalized communities. Consequently, Parsons cautions against "one-size-fits-all" policy approaches, emphasizing that aggressive formalization efforts in fragile settings can backfire by stripping away essential survival opportunities for the poor before formal, productive employment is established.

Read the full research study in the Journal of Policy Modeling here.