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Politics At Work

Author

Listed:
  • Emanuele Colonnelli
  • Valdemar Pinho Neto
  • Edoardo Teso

Abstract

We study how individual political views shape firm behavior and labor market outcomes using new micro-data from Brazil. We first show that business owners are considerably more likely to employ copartisan workers. This phenomenon is in part driven by the overlapping of political and social networks. Multiple tests—a survey, an event study, analyses of wage premia and promotions within the firm, and a field experiment—further highlight how business owners’ political preferences directly influence firms’ employment decisions. A channel of political discrimination appears more relevant than one of political quid-pro-quo between firms and politicians.

Suggested Citation

  • Emanuele Colonnelli & Valdemar Pinho Neto & Edoardo Teso, 2022. "Politics At Work," NBER Working Papers 30182, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30182
    Note: CF DEV IO LE LS PE POL PR
    as

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • G0 - Financial Economics - - General
    • G3 - Financial Economics - - Corporate Finance and Governance
    • G4 - Financial Economics - - Behavioral Finance
    • J0 - Labor and Demographic Economics - - General
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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