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The value of political capital: Dictatorship collaborators as business elites

Felipe González and Mounu Prem

Journal of Economic Behavior & Organization, 2018, vol. 155, issue C, 217-230

Abstract: What is the value of political capital for individuals? Towards the end of the Pinochet dictatorship in Chile, military and civilian collaborators entered the business elite, controlling the largest and most important firms in the country. Using a novel panel dataset of board members in these firms, we document an appointment premium for those who had previously collaborated with Pinochet. After democratization, however, collaborators were removed from boards and their compensation premium disappeared. These results suggest that dictatorship collaborators earn a premium in the business world in dictatorship, but not in democracy.

Keywords: Political capital; Collaborators; Dictatorship; Armed forces (search for similar items in EconPapers)
Date: 2018
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Working Paper: The Value of Political Capital: Dictatorship Collaborators as Business Elites (2018) Downloads
Working Paper: The Value of Political Capital: Dictatorship Collaborators as Business Elites (2018) Downloads
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