The conventional view of corruption emphasizes its detrimental impact on the evaluations of public institutions. This view implies that in corruption-intense environments, the public should exert strong pressure on relevant authorities to combat corruption. Yet, multiple historical accounts suggest that in such contexts, corruption tends to thrive even despite extensive state-imposed anti-corruption measures. In this letter, we address this puzzle by studying the context-dependent effects of individual experiences of petty corrupt exchanges on the popular evaluation of public institutions. Drawing on the literature on the functionality of informal exchanges and normalization of corruption, we posit that negative effects of such experiences will be attenuated by the presence of institutional corruption among public service providers. In contexts permeated by corruption, corrupt exchanges will become routine, with limited effect on citizens' perceptions of street-level bureaucracy. Our empirical test, relying on a unique cross-national survey dataset from Central-Eastern Europe and a fine-grained ecological (municipality-level) indicator of corruption, largely supports these conjectures.