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Labor Supply of Politicians / Raymond Fisman, Nikolaj A. Harmon, Emir Kamenica, Inger Munk.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Fisman, Raymond.
Contributor:
National Bureau of Economic Research.
Harmon, Nikolaj A.
Kamenica, Emir.
Munk, Inger.
Series:
Working Paper Series (National Bureau of Economic Research) no. w17726.
NBER working paper series no. w17726
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2012.
Summary:
We examine the labor supply of politicians using data on Members of the European Parliament (MEPs). We exploit the introduction of a law that equalized MEPs' salaries, which had previously differed by as much as a factor of ten. Doubling an MEP's salary increases the probability of running for reelection by 23 percentage points and increases the logarithm of the number of parties that field a candidate by 29 percent of a standard deviation. A salary increase has no discernible impact on absenteeism or shirking from legislative sessions; in contrast, non-pecuniary motives, proxied by home-country corruption, substantially impact the intensive margin of labor supply. Finally, an increase in salary lowers the quality of elected MEPs, measured by the selectivity of their undergraduate institutions.
Notes:
Print version record
January 2012.

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