"Labor Supply of Politicians"
Publication type: Working paper
Using data on Members of the European Parliament (MEPs), we examine the impact of salaries on the composition and the behavior of legislators. Employing a differences-in-differences approach, we exploit the introduction of a law that equalized MEPs' salaries which had previously differed by as much as a factor of ten. Increasing salaries raises the fraction of MEPs who run for reelection but decreases the quality of elected MEPs (proxied by college quality.) Salary has no discernible impact on effort or legislative output. Higher salaries induce more political competition.
Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.
Each topic is linked to an index of publications on that topic.