How Effective Are Monetary Incentives to Vote? Evidence from a Nationwide Policy

Working Paper: CEPR ID: DP13898

Authors: Gianmarco Leon Ciliotta; Luis Martinez; Mariella Gonzales

Abstract: We combine two natural experiments, multiple empirical strategies and administrative data to study voters' response to marginal changes to the fi ne for electoral abstention in Peru. A smaller fi ne leads to a robust decrease in voter turnout. However, the drop in turnout caused by a full fi ne reduction is less than 20% the size of that caused by an exemption from compulsory voting, indicating the predominance of the non-monetary incentives provided by the mandate to vote. Additionally, almost 90% of the votes generated by a marginally larger fi ne are blank or invalid, lending support to the hypothesis of rational abstention. Higher demand for information andlarger long-run eff ects following an adjustment to the value of the fine point to the existence of informational frictions that limit adaptation to institutional changes.

Keywords: voter turnout; voter registration; compulsory voting; informational frictions; external validity; peru

JEL Codes: D72; D78; D83; K42


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
abstention fine increase (H26)voter turnout increase (K16)
abstention fine increase (H26)blank or invalid votes increase (K16)
abstention fine increase (H26)heterogeneous turnout response (D79)

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