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Returns to office in national and local politics

Author

Listed:
  • Kaisa Kotakorpi

    (University of Turku, Department of Economics and CESifo)

  • Panu Poutvaara

    (University of Munich, Ifo Institute, CESifo, and IZA)

  • Marko Tervio

    (Aalto University and HECER)

Abstract

We study the returns to political office using data from Finnish parliamentary elections in 1970-2007 and municipal elections in 1996-2008. The discontinuity of electoral outcomes in individual candidate votes allows us to estimate the causal effect of being electedon subsequent income. Getting elected to parliament increases annual earnings initially by about 20 000 euro, but most of this effect fades out over time. Getting elected to a municipal council has a positive effect of about 1000 euro on subsequent annual earnings.

Suggested Citation

  • Kaisa Kotakorpi & Panu Poutvaara & Marko Tervio, 2013. "Returns to office in national and local politics," Discussion Papers 86, Aboa Centre for Economics.
  • Handle: RePEc:tkk:dpaper:dp86
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Björn Kauder & Manuela Krause & Niklas Potrafke, 2016. "Electoral Cycles in MPs' Salaries: Evidence from the German States," CESifo Working Paper Series 6028, CESifo Group Munich.
    2. Freier, Ronny & Odendahl, Christian, 2015. "Do parties matter? Estimating the effect of political power in multi-party systems," European Economic Review, Elsevier, vol. 80(C), pages 310-328.
    3. Arnold, Felix & Kauder, Björn & Potrafke, Niklas, 2014. "Outside earnings, absence, and activity: Evidence from German parliamentarians," European Journal of Political Economy, Elsevier, vol. 36(C), pages 147-157.
    4. Hyytinen, Ari & Meriläinen, Jaakko & Saarimaa, Tuukka & Toivanen, Otto & Tukiainen, Janne, 2018. "Public Employees as Politicians: Evidence from Close Elections," American Political Science Review, Cambridge University Press, vol. 112(01), pages 68-81, February.
    5. Hyytinen, Ari & Saarimaa, Tuukka & Tukiainen, Janne, 2014. "Electoral vulnerability and size of local governments: Evidence from voting on municipal mergers," Journal of Public Economics, Elsevier, vol. 120(C), pages 193-204.
    6. Lundin, Martin & Nordström Skans, Oskar & Zetterberg, Pär, 2016. "Leadership experiences, labor market entry, and early career trajectories," Working Paper Series 2016:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Meriläinen, Jaakko & Tukiainen, Janne, 2016. "Primary Effect in Open-List Elections," Working Papers 79, VATT Institute for Economic Research.
    8. Lundin, Martin & Nordström Skans, Oskar & Zetterberg, Pär, 2018. "Leadership Experiences, Labor Market Entry, and Early Career Trajectories," IZA Discussion Papers 11434, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    returns to office; elections; regression discontinuity;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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