Labor Supply of Politicians

TY - JOUR

T1 - Labor Supply of Politicians

AU - Fisman, Raymond

AU - Harmon, Nikolaj Arpe

AU - Kamenica, Emir

AU - Munk, Inger

N1 - Jel Classification: D72;D73

PY - 2015/10/1

Y1 - 2015/10/1

N2 - Using data on Members of the European Parliament (MEPs), we examine the impact of salaries on the composition and the behavior of legislators. Employing a differences-in-differences approach, we exploit the introduction of a law that equalized MEPs' salaries which had previously differed by as much as a factor of 10. Increasing salaries raises the fraction of MEPs who run for re-election but decreases the quality of elected MEPs (proxied by college quality). Salary has no discernible impact on effort or legislation output. Higher salaries induce more political competition.

AB - Using data on Members of the European Parliament (MEPs), we examine the impact of salaries on the composition and the behavior of legislators. Employing a differences-in-differences approach, we exploit the introduction of a law that equalized MEPs' salaries which had previously differed by as much as a factor of 10. Increasing salaries raises the fraction of MEPs who run for re-election but decreases the quality of elected MEPs (proxied by college quality). Salary has no discernible impact on effort or legislation output. Higher salaries induce more political competition.

U2 - 10.1111/jeea.12141

DO - 10.1111/jeea.12141

M3 - Journal article

SN - 1542-4766

VL - 13

SP - 871

EP - 905

JO - Journal of the European Economic Association

JF - Journal of the European Economic Association

IS - 5

ER -