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A Time to Make Laws and a Time to Fundraise? On the Relation between Salaries and Time Use for State Politicians

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  • Mitchell Hoffman
  • Elizabeth Lyons

Abstract

Paying higher salaries is often believed to enhance worker effort, leading workers to work harder to avoid getting fired. However, workers may also respond to higher salaries by focusing on tasks that most directly affect getting fired (as opposed to those that contribute most to productivity). We explore these issues by analyzing the relationship between the level of compensation and time use for US state legislators. Using data on time use and legislator salaries, we show that higher salary is associated with legislators spending more time on fundraising. In contrast, higher salary is also associated with less time spent on legislative activities and has no clear relation to time spent on constituent services. Subgroup analysis broadly supports our interpretation of the data.

Suggested Citation

  • Mitchell Hoffman & Elizabeth Lyons, 2016. "A Time to Make Laws and a Time to Fundraise? On the Relation between Salaries and Time Use for State Politicians," NBER Working Papers 22571, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22571
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    1. Mitchell Hoffman & Elizabeth Lyons, 2020. "A time to make laws and a time to fundraise? On the relation between salaries and time use for state politicians," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 1318-1358, August.

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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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