The politicians' wage gap: insights from German members of parliament


Peichl, Andreas ; Pestel, Nico ; Siegloch, Sebastian



URL: https://econpapers.repec.org/paper/pramprapa/34595...
Additional URL: https://ideas.repec.org/p/pra/mprapa/34595.html
Document Type: Working paper
Year of publication: 2011
The title of a journal, publication series: MPRA Paper / Munich Personal RePEc Archive
Volume: 34595
Place of publication: München
Publishing house: University Library of Munich
Publication language: English
Institution: School of Law and Economics > VWL, Quantitative Finanzwissenschaft (Peichl 2013-2017)
School of Law and Economics > VWL, Soziale Sicherung (Siegloch 2018-)
Subject: 330 Economics
Classification: JEL: D72 , H11 , H83 , J31 , J45,
Keywords (English): politicians’ wage gap , citizen-candidate model , office remuneration , outside earnings
Abstract: Using a unique dataset of German members of parliament (MPs) this paper analyzes the politicians’ wage gap (PWG). After controlling for observable characteristics as well as accounting for election probabilities and campaigning costs, we find a positive income premium for MPs which is statistically and economically significant. Our results are consistent with the citizen candidate model: The PWG amounts to 35–65% when comparing MPs to citizens in an executive position. However, it shrinks to zero when restricting the control group to top-level executives. This suggests that German politicians do not receive excessive pay when compared to senior executives.

Dieser Datensatz wurde nicht während einer Tätigkeit an der Universität Mannheim veröffentlicht, dies ist eine Externe Publikation.




+ Citation Example and Export

Peichl, Andreas ; Pestel, Nico ; Siegloch, Sebastian (2011) The politicians' wage gap: insights from German members of parliament. MPRA Paper / Munich Personal RePEc Archive München 34595 [Working paper]


+ Search Authors in

+ Page Views

Hits per month over past year

Detailed information



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item