Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185476 
Authors: 
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 7278
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Is politics a lucrative business? The question is approached in this paper, as one of few to quantify the monetary returns to holding political office in a typical developed democracy where parties are the main political actors. By applying a difference-in-difference setting with a carefully chosen control group to rich data on candidates to the Swedish national parliament, both short and long-run effects of being elected on different types of income are estimated. Results show that, yes, mostly thanks to relatively high remuneration while still in office, politics can be a lucrative business. In the long-run however, the effect is instead compositional in the sense that ex-politicians receive more pension income and work less.
Subjects: 
returns to politics
difference-in-difference
JEL: 
C23
D72
J44
Document Type: 
Working Paper
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