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Politicians' payments in a proportional party system
Stockholm University, Faculty of Social Sciences, Department of Economics.
Number of Authors: 12020 (English)In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 128, article id 103504Article in journal (Refereed) Published
Abstract [en]

Are there monetary returns to politics? This question is approached in this paper, as one of few to quantify the monetary returns to holding political office in a country with proportional representation system. I apply a difference-in-difference setting with a carefully chosen control group to rich data on candidates to the Swedish national parliament. Both shortand long-run effects of being elected on different types of income are estimated. Results show that, yes, mostly thanks to relatively high remuneration while still in office, politics can yield positive monetary returns. In the long-run however, the effect is instead compositional in the sense that ex-politicians receive more pension income and work less.

Place, publisher, year, edition, pages
2020. Vol. 128, article id 103504
Keywords [en]
Returns to politics, Difference-in-difference
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:su:diva-186476DOI: 10.1016/j.euroecorev.2020.103504ISI: 000565665800001OAI: oai:DiVA.org:su-186476DiVA, id: diva2:1495051
Available from: 2020-11-04 Created: 2020-11-04 Last updated: 2022-02-25Bibliographically approved

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Berg, Heléne

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