Ifo Institute – Leibniz Institute for Economic Research at the University of Munich Just hire your spouse! Evidence from a political scandal in Bavaria Björn Kauder Niklas Potrafke Ifo Working Paper No. 194 December 2014 An electronic version of the paper may be downloaded from the Ifo website www.cesifo-group.de. Ifo Working Paper No. 194 Just hire your spouse! Evidence from a political scandal in Bavaria This paper has been accepted for publication in the European Journal of Political Economy Abstract We investigate a case of political favoritism. Some members of the Bavarian parliament hired relatives as office employees who were paid using taxpayers’ money. The family scandal was a hot issue in the German media because of the upcoming state and federal elections. We examine whether being involved in the scandal influenced re-election prospects and voter turnout. The results do not show that being involved in the scandal influenced the outcome and voter turnout of the 2013 state elections. Voters did not appear to punish the incumbent government because the reigning CSU endorses Bavarian identity and managed to overcome the family scandal, as the CSU already managed to overcome previous scandals. JEL Code: D72, H7, A13. Keywords: Political scandal, favoritism, nepotism, re-election prospects, voter turnout. Björn Kauder Niklas Potrafke Ifo Institute – Leibniz Institute for University of Munich, Economic Research Ifo Institute – Leibniz Institute for at the University of Munich Economic Research Poschingerstr. 5 at the University of Munich 81679 Munich, Germany Poschingerstr. 5 Phone: +49(0)89/9224-1331 81679 Munich, Germany
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