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Just Hire Your Wife! The Relatives Affair in Bavaria – Part Two of the Analysis

Björn Kauder, Niklas Potrafke, Alexander Stecher
ifo Institut, München, 2015

ifo Schnelldienst, 2015, 68, Nr. 20, 20-24

For a long time members of the Bavarian State parliament were allowed to give relatives jobs as office employees, but as of 2000 this practice was forbidden, with the exception of relatives already employed. An analysis shows that the probability that a directly elected politician will employ relatives rises with the margin of winning votes gained in the previous election. If the margin increases by 1 percentage point, the probability of a relative being employed increases by the roughly the same amount.

JEL Classification: D720, H700, A130

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ifo Institut, München, 2015