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| Author: | Kotakorpi, K. Poutvaara, P. |
| Title: | Pay for politicians and candidate selection: an empirical analysis |
| Journal: | Journal of Public Economics
2011 : AUG, VOL. 95:7-8 p. 877-885 |
| Index terms: | Finland politics public sector labour markets gender pay |
| Freeterms: | wages |
| Language: | eng |
| Abstract: | An increasing theoretical literature on the effect of politicians' salaries on the average level of political candidates' skills yields ambiguous predictions. In this study, we estimate the effect of wages for politicians on the education level of parliamentary candidates. We utilize an exceptional reform where the salaries of Finnish MPs were increased by 35% in the year 2000, intended to increase the competitiveness of the pay for parliamentarians. A difference-in-differences analysis, with candidates in municipal elections serving as a control group, suggests that the higher salary increased the fraction of higher education candidates among females, while no significant effect is found for male candidates. |
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