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The Price of Political Opposition: Evidence from Venezuela's Maisanta

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  • Chang-Tai Hsieh
  • Edward Miguel
  • Daniel Ortega
  • Francisco Rodriguez

Abstract

In 2004, the Chávez regime in Venezuela distributed the list of several million voters whom had attempted to remove him from office throughout the government bureaucracy, allegedly to identify and punish these voters. We match the list of petition signers distributed by the government to household survey respondents to measure the economic effects of being identified as a Chavez political opponent. We find that voters who were identified as Chavez opponents experienced a 5 percent drop in earnings and a 1.5 percentage point drop in employment rates after the voter list was released. A back-of-the-envelope calculation suggests that the loss aggregate TFP from the misallocation of workers across jobs was substantial, on the order of 3 percent of GDP.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14923.

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Date of creation: Apr 2009
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Handle: RePEc:nbr:nberwo:14923

Note: EFG LS PE POL
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  1. Joachim Voth & Thomas Ferguson, 2008. "Betting on Hitler: The value of political connections in Nazi Germany," Economics Working Papers 1183, Department of Economics and Business, Universitat Pompeu Fabra.
  2. Rodrik, Dani & Alesina, Alberto, 1994. "Distributive Politics and Economic Growth," Scholarly Articles 4551798, Harvard University Department of Economics.
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  7. Roubini, Nouriel & Swagel, Phillip & Ozler, Sule & Alesina, Alberto, 1996. "Political Instability and Economic Growth," Scholarly Articles 4553024, Harvard University Department of Economics.
  8. Jack Hirshleifer, 1991. "The Paradox Of Power," Economics and Politics, Wiley Blackwell, vol. 3(3), pages 177-200, November.
  9. Raymond Fisman, 2001. "Estimating the Value of Political Connections," American Economic Review, American Economic Association, vol. 91(4), pages 1095-1102, September.
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Cited by:
  1. Gonzalez, Naihobe & Oyelere, Ruth Uwaifo, 2011. "Are returns to education on the decline in Venezuela and does Mission Sucre have a role to play?," Economics of Education Review, Elsevier, vol. 30(6), pages 1348-1369.

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