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Pay for Politicians and Candidate Selection: An Empirical Analysis

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  • Kotakorpi, Kaisa

    (University of Turku)

  • Poutvaara, Panu

    (University of Munich)

Abstract

In this paper, we estimate the effect of pay for politicians on who wants to be a politician. We take advantage of a considerable 35 percent salary increase of Finnish MPs in the year 2000, intended to make the pay for parliamentarians more competitive. A difference-indifferences analysis, using candidates in municipal elections as a control group, suggests that the higher salary had the intended effect among women, whether measured by education or occupational qualifications. We also examine cross-party differences.

Suggested Citation

  • Kotakorpi, Kaisa & Poutvaara, Panu, 2009. "Pay for Politicians and Candidate Selection: An Empirical Analysis," IZA Discussion Papers 4235, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4235
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    More about this item

    Keywords

    candidate selection; gender differences in politics; pay for politicians;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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