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Is Leisure a Normal Good? Evidence from the European Parliament

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  • Naci Mocan

    ()
    (Louisiana State University, NBER and IZA)

  • Duha T. Altindag

    ()
    (Auburn University)

Abstract

Prior to July 2009, salaries of the members of the European Parliament were paid by their home country and there were substantial salary differences between parliamentarians representing different EU countries. Starting in July 2009, the salary of each member of the Parliament is pegged to 38.5% of a European Court judge’s salary, paid by the EU. This created an exogenous change in salaries, the magnitude and direction of which varied substantially between parliamentarians. Parliamentarians receive per diem compensation for each plenary session they attend, but salaries constitute unearned income as they are independent of attendance to the Parliament. Using detailed information on each parliamentarian of the European Parliament between 2004 and 2011 we show that an increase in salaries reduces attendance to plenary sessions and an increase in per diem compensation increases it. We also show that corruption in home country has a negative effect on attendance for seasoned members of the Parliament.

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Bibliographic Info

Paper provided by Koc University-TUSIAD Economic Research Forum in its series Koç University-TUSIAD Economic Research Forum Working Papers with number 1120.

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Length: 43 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:koc:wpaper:1120

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  1. N. S. Blomquist & U. Hansson-Brusewitz, 1990. "The Effect of Taxes on Male and Female Labor Supply in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 317-357.
  2. Soest, A.H.O. van & Das, J.W.M. & Gong, X., 2001. "A Structural Labour Supply Model with Flexible Preferences," Open Access publications from Tilburg University urn:nbn:nl:ui:12-119390, Tilburg University.
  3. Dickinson, David L, 1999. "An Experimental Examination of Labor Supply and Work Intensities," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 638-70, October.
  4. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier.
  5. Abdul Ghafar Noury & Simon Hix & Gérard Roland, 2006. "Dimensions of politics in the European Parliament," ULB Institutional Repository 2013/7750, ULB -- Universite Libre de Bruxelles.
  6. Soest, A.H.O. van & Woittiez, I.B. & Kapteyn, A.J., 1990. "Labor supply, income taxes and hours restrictions in the Netherlands," Open Access publications from Tilburg University urn:nbn:nl:ui:12-364378, Tilburg University.
  7. David Joulfaian & Mark O. Wilhelm, 1994. "Inheritance and Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 29(4), pages 1205-1234.
  8. Ugo Colombino & Daniela del Boca, 1990. "The Effect of Taxes on Labor Supply in Italy," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 390-414.
  9. Arrufat, Jose Luis & Zabalza, Antonio, 1986. "Female Labor Supply with Taxation, Random Preferences, and Optimization Errors," Econometrica, Econometric Society, vol. 54(1), pages 47-63, January.
  10. Naci Mocan, 2008. "What Determines Corruption? International Evidence From Microdata," Economic Inquiry, Western Economic Association International, vol. 46(4), pages 493-510, October.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Politicians and leisure
    by Economic Logician in Economic Logic on 2011-10-06 14:26:00
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Cited by:
  1. Raymond Fisman & Nikolaj A. Harmon & Emir Kamenica & Inger Munk, 2012. "Labor Supply of Politicians," NBER Working Papers 17726, National Bureau of Economic Research, Inc.
  2. Naci Mocan & Duha T. Altindag, 2013. "Salaries and Work Effort: An Analysis of the European Union Parliamentarians," Auburn Economics Working Paper Series auwp2013-02, Department of Economics, Auburn University.

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