Pay for Politicians and Candidate Selection: An Empirical Analysis
30 Pages Posted: 21 Jun 2009
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.
Keywords: pay for politicians, candidate selection, gender differences in politics
JEL Classification: D72, J3, J45
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