Politicians’ payments in a proportional party system

Heléne Berg

European Economic Review, 2020, vol. 128, issue C

Abstract: 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 short- and 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.

Keywords: Returns to politics; Difference-in-difference (search for similar items in EconPapers)
JEL-codes: C23 D72 J44 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:128:y:2020:i:c:s0014292120301355

DOI: 10.1016/j.euroecorev.2020.103504

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