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dc.contributor.authorPeichl, Andreasen
dc.contributor.authorPestel, Nicoen
dc.contributor.authorSiegloch, Sebastianen
dc.date.accessioned2011-07-19-
dc.date.accessioned2011-11-23T11:32:33Z-
dc.date.available2011-11-23T11:32:33Z-
dc.date.issued2011-
dc.identifier.piurn:nbn:de:101:1-201104113934en
dc.identifier.urihttp://hdl.handle.net/10419/51669-
dc.description.abstractUsing a unique dataset of German members of parliament with information on total earnings including outside income, this paper analyzes the politicians' wage gap (PWG). After controlling for observable characteristics as well as accounting for selection into politics, we find a positive PWG which is statistically and economically significant. It amounts to 40-60% compared to citizens with an executive position. Hence, we show that the widely held claim that politicians would earn more in the private sector is not confirmed by our data. Our findings are robust with respect to potential unobserved confounders. We further show that the PWG exceeds campaigning costs and cannot be justified by extraordinary workload. Hence, our results suggest that part of the PWG can be interpreted as rent extraction. This calls for a reform of the regulation of outside earnings, which account for a sizeable share of the wage premium.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x5520en
dc.subject.jelD72en
dc.subject.jelH11en
dc.subject.jelH83en
dc.subject.jelJ31en
dc.subject.jelJ45en
dc.subject.ddc330en
dc.subject.keywordpoliticians' wage gapen
dc.subject.keyworddescriptive representationen
dc.subject.keywordcitizen-candidate modelen
dc.subject.keywordpolitical rentsen
dc.subject.keywordoutside earningsen
dc.subject.stwPolitikeren
dc.subject.stwNebentätigkeiten
dc.subject.stwLohndriften
dc.subject.stwRent Seekingen
dc.subject.stwDeutschlanden
dc.titleThe politicians' wage gap: Insights from German members of parliament-
dc.typeWorking Paperen
dc.identifier.ppn664415482en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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