The Perks of Being a Lawmaker: Returns to Office as a Legislative Goal

Abstract

Extant literature demonstrates that holding public office is financially lucrative. Yet little is known about which sitting legislators profit from office. Relying on original data of members of the Florida legislature, I estimate predictors of income growth among sitting legislators. I find that legislators whose vote share increases by 10 percentage points between elections report income growth of nearly $20,000. This finding is robust to estimation technique and model specification, indicating that electoral safety is tied to income growth. Lawmakers appointed to legislative posts with agenda‐setting power do not obtain additional income. These data demonstrate the market values of electorally dominant legislators.

A post‐politics earnings penalty? Evidence from politicians' lifetime income trajectories (1970–2019)

“…Berg (2020a), Cirone et al (2021) and Dahlgaard et al (2022) show that Swedish, Norwegian and Danish MPs, respectively, on average witness a very considerable income boost when first elected. Peichl et al (2013) and Fahey (2018) present similar findings for German MPs and US state legislators, respectively. The vast majority of politicians, however, serve at lower levels of government (e.g., region or municipality).…”

“…Even so, it remains a hotly debated issue to this day. Most empirical studies thus far have focused on the short‐ and/or long‐term returns to entering or retaining political office (Berg, 2020a; Cirone et al, 2021; Dahlgaard et al, 2022; Diermeier et al, 2005; Eggers & Hainmueller, 2009; Fahey, 2018; Fisman et al, 2014; Peichl et al, 2013). Scholarship on what happens when politicians leave office is much less developed.…”

Longevity returns to political office

“…Holding political office entails stress, long working hours, and an irregular work schedule. However, the demanding life in office also comes with a series of perks such as the significant financial return to political office (Eggers and Hainmueller, 2009; Fisman et al , 2014; Palmer and Schneer, 2016; Fahey, 2018). While studies have emphasized the costs and benefits of holding political office, there is one key return to office that has so far received little attention in the literature: politicians' health.…”