Is Leisure a Normal Good? Evidence from the European Parliament
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.
|Date of creation:||Aug 2011|
|Date of revision:|
|Publication status:||published as “ Salaries and Work Effort: Evidence from the Europea n Parliament ,” with Duha Altı ndag . ( NBER Working Paper No: 17329) . The Economic Journal. December 2013. Vol. 123; pp. 1130 - 67.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- M Arellano & Costas Megir & Mary Silles, 1990.
"Female Labour Supply and On-the-Job Search: An Empirical Model Estimated using Complementary Data Sets,"
CEP Discussion Papers
dp0009, Centre for Economic Performance, LSE.
- Manuel Arellano & Costas Meghir, 1992. "Female Labour Supply and On-the-Job Search: An Empirical Model Estimated Using Complementary Data Sets," Review of Economic Studies, Oxford University Press, vol. 59(3), pages 537-559.
- van Soest, Arthur & Das, Marcel & Gong, Xiaodong, 2002.
"A structural labour supply model with flexible preferences,"
Journal of Econometrics,
Elsevier, vol. 107(1-2), pages 345-374, March.
- van Soest, A.H.O. & Das, J.W.M. & Gong, X., 2001. "A structural labour supply model with flexible preferences," Other publications TiSEM 07a46b83-f128-4ea5-8498-9, Tilburg University, School of Economics and Management.
- Naci Mocan, 2008.
"What Determines Corruption? International Evidence From Microdata,"
Western Economic Association International, vol. 46(4), pages 493-510, October.
- Naci Mocan, 2004. "What Determines Corruption? International Evidence from Micro Data," NBER Working Papers 10460, National Bureau of Economic Research, Inc.
- 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
- 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.
- Joulfaian, D. & Wilheim, M.O., 1992.
"Inheritance and Labor Supply,"
6-92-2, Pennsylvania State - Department of Economics.
- Arthur van Soest & Isolde Woittiez & Arie Kapteyn, 1990.
"Labor Supply, Income Taxes, and Hours Restrictions in the Netherlands,"
Journal of Human Resources,
University of Wisconsin Press, vol. 25(3), pages 517-558.
- Kapteyn, A. & Soest, A.V. & Woittiez, I., 1989. "Labour Supply, Income Taxes And Hours Restrictions In The Netherlands," Papers 8903, Tilburg - Center for Economic Research.
- van Soest, A.H.O. & Woittiez, I.B. & Kapteyn, A.J., 1989. "Labour supply, income taxes and hours restrictions in the Netherlands," Discussion Paper 1989-3, Tilburg University, Center for Economic Research.
- 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.
- 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.
- 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.
- Douglas Holtz-Eakin & David Joulfaian & Harvey S. Rosen, 1993. "The Carnegie Conjecture: Some Empirical Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 108(2), pages 413-435.
- 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.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:17329. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.