Working Paper: NBER ID: w23120
Authors: Ernesto Dal Bó; Frederico Finan; Olle Folke; Torsten Persson; Johanna Rickne
Abstract: Can a democracy attract competent leaders, while attaining broad representation? Economic models suggest that free-riding incentives and lower opportunity costs give the less competent a comparative advantage at entering political life. Moreover, if elites have more human capital, selecting on competence may lead to uneven representation. This paper examines patterns of political selection among the universe of municipal politicians and national legislators in Sweden, using extraordinarily rich data on competence traits and social background for the entire population. We document four new facts that together characterize an “inclusive meritocracy.” First, politicians are on average significantly smarter and better leaders than the population they represent. Second, this positive selection is present even when conditioning on family (and hence social) background, suggesting that individual competence is key for selection. Third, the representation of social background, whether measured by parental earnings or occupational social class, is remarkably even. Fourth, there is at best a weak tradeoff in selection between competence and social representation, mainly due to strong positive selection of politicians of low (parental) socioeconomic status. A broad implication of these facts is that it is possible for democracy to generate competent and socially-representative leadership.
Keywords: No keywords provided
JEL Codes: H10; H70; J45; P16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| individual competence (D83) | political selection (D72) |
| family background (J12) | political selection (D72) |
| social background (P36) | political selection (D72) |
| politicians' abilities (D72) | positive selection (C52) |
| electoral systems (K16) | selection outcomes (C52) |
| party screening (D72) | competent candidates (D79) |
| lower socioeconomic backgrounds (I24) | strong selection (C52) |