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Do Politicians’ Relatives Get Better Jobs? Evidence from Municipal Elections

Author

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  • Marcel Fafchamps
  • Julien Labonne

Abstract

This paper estimates the impacts of being connected to politicians on occupational choice. Using an administrative dataset collected in 2008–2010 on 20 million individuals in the Philippines, we rely on naming conventions to assess family links to candidates in elections held in 2007 and 2010. We combine a regression discontinuity design to close elections in 2007 with an alternative approach using individuals connected to successful candidates in 2010 as control group. This allows us to net out the possible cost associated with being related to a losing candidate. We find robust evidence that relatives of current office-holders are more likely to be employed in better paying occupations (JEL D13, D72, J24, P16).

Suggested Citation

  • Marcel Fafchamps & Julien Labonne, 2017. "Do Politicians’ Relatives Get Better Jobs? Evidence from Municipal Elections," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 33(2), pages 268-300.
    • Handle: RePEc:oup:jleorg:v:33:y:2017:i:2:p:268-300.
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    File URL: http://hdl.handle.net/10.1093/jleo/ewx001
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    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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