The politicians’ wage gap: insights from German members of parliament

Andreas Peichl, Nico Pestel and Sebastian Siegloch

MPRA Paper from University Library of Munich, Germany

Abstract: Using a unique dataset of German members of parliament (MPs) this paper analyzes the politicians’ wage gap (PWG). After controlling for observable characteristics as well as accounting for election probabilities and campaigning costs, we find a positive income premium for MPs which is statistically and economically significant. Our results are consistent with the citizen candidate model: The PWG amounts to 35–65% when comparing MPs to citizens in an executive position. However, it shrinks to zero when restricting the control group to top-level executives. This suggests that German politicians do not receive excessive pay when compared to senior executives.

Keywords: politicians’ wage gap; citizen-candidate model; office remuneration; outside earnings (search for similar items in EconPapers)
JEL-codes: D72 H11 H83 J31 J45 (search for similar items in EconPapers)
Date: 2011-11-02
New Economics Papers: this item is included in nep-lab and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The politicians’ wage gap: insights from German members of parliament (2013)
Working Paper: The Politicians' Wage Gap: Insights from German Members of Parliament (2011)
Working Paper: The Politicians' Wage Gap: Insights from German Members of Parliament (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:34595

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