Productive Office and Political Elitism
P4-1
Presented by: Jan Auerbach
I explore a rewards channel through which political elitism---virtually all legislators are high-income citizens---can arise by self-selection when, as evidence suggests, candidates' electoral prospects are independent of income. Elitism arises if and only if the office is attractive and the income difference between holding office, which gives a salary and outside income, and being a private citizen is sufficiently higher for high- than for low-income citizens. It can arise while holding office yields a higher income premium or facilitates more productive outside activities for low-income citizens. Restricting outside activities while in office prevents elitism, while adjusting legislator salaries may not.