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How Effective Are Monetary Incentives to Vote? Evidence from a Nationwide Policy

Author

Listed:
  • Mariella Gonzales
  • Gianmarco León-Ciliotta
  • Luis R. Martínez

Abstract

We study voters' response to marginal changes to the fine for electoral abstention in Peru, leveraging variation from a nationwide reform. A smaller fine has a robust, negative effect on voter turnout, partly through irregular changes in voter registration. However, representation is largely unaffected, as most of the lost votes are blank or invalid. We also show that the effect of an exemption from compulsory voting is substantially larger than that of a full fine reduction, suggesting that nonmonetary incentives are the main drivers behind the effectiveness of compulsory voting.

Suggested Citation

  • Mariella Gonzales & Gianmarco León-Ciliotta & Luis R. Martínez, 2022. "How Effective Are Monetary Incentives to Vote? Evidence from a Nationwide Policy," American Economic Journal: Applied Economics, American Economic Association, vol. 14(1), pages 293-326, January.
  • Handle: RePEc:aea:aejapp:v:14:y:2022:i:1:p:293-326
    DOI: 10.1257/app.20200482
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    Cited by:

    1. Donati, Dante, 2023. "Mobile Internet access and political outcomes: Evidence from South Africa," Journal of Development Economics, Elsevier, vol. 162(C).
    2. Klien, Michael & Melki, Mickael & Pickering, Andrew, 2021. "Voter turnout and intergenerational redistribution," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 603-626.
    3. Bhatt, Rachana & Dechter, Evgenia & Holden, Richard, 2020. "Registration costs and voter turnout," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 91-104.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • K16 - Law and Economics - - Basic Areas of Law - - - Election Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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