Private Wage Returns to Political Office
brazilian politcs; private return; incumbent advantage; discontinuity regression design
A relevant issue in Brazilian politics is whether there is a salary gain in the private sector for elected politicians. In this study, I analyze data from elections for city council members in Brazil, the Annual Report of Social Information (RAIS), and the National Public Procurement Portal. Using the Regression Discontinuity Design (RDD) and the margin of victory as a running variable, I establish that there is a salary advantage from elected council members compared to who were nearly elected, being the tendency to remain in office one of the factors that can contribute to this difference. Additionally, using RDD, I verify that companies that employ council members have a higher chance of obtaining contracts at the municipal level than those that employ almost-elected candidates.