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Stefano Gagliarducci (Università di Roma Tor Vergata)

3 December 2013 @ 12:00 - 13:15

 

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Date:
3 December 2013
Time:
12:00 - 13:15
Event Category:

“The Labor Market Returns to Political Connections”

abstract

In this paper we document the labor market returns to being a family member of a politician in office. To this purpose, we link data for 16 years on the universe of politicians in Italy with a 1/91 random sample of private sector employees, based on the city of birth and the first three consonants of the last name. Results show that one individual in office in a given year leads to sizable gains in employment outcomes among his family members, both in terms of months of work and earnings. The effect is stronger in sectors that depend more on public funds, for more powerful politicians, and in big cities. The latter result is driven both by a larger labor market size and a larger budget per politician.