Can higher pay bring more people into local politics?

Local politics is struggling to attract new candidates. Could higher pay help reverse that trend?

A recent IZA Discussion Paper by Augusto Cerqua, Samuel Nocito and Gabriele Pinto examines this question using a major reform in Italy that substantially increased the salaries of local politicians in 2021. Depending on municipality size, mayoral salaries rose by 33% to 59%. The authors exploit differences in the timing of municipal elections to compare elections held after the reform with those held just before it.

More newcomers enter the race

The salary increase did not lead to a significant rise in the overall number of mayoral candidates. But the picture changes in municipalities where political entry was easier.

In open-seat elections, where the incumbent mayor could not seek re-election, the number of candidates increased, driven particularly by first-time candidates. Similar effects emerged in municipalities that had attracted no more than two mayoral candidates in the previous election.

The reform also encouraged female political participation in these settings, increasing the number of female candidates and the probability of electing a female mayor.

More candidates, but not necessarily stronger qualifications

Higher pay did not translate into a broad improvement in the educational or professional characteristics of elected politicians.

The effects varied considerably across municipalities. In the poorest municipalities, the reform increased the share of executive committee members from white-collar professions, but was also associated with lower average education among city council members.

The findings suggest that financial incentives can broaden the pool of people willing to enter local politics, particularly where alternative employment opportunities are limited. But attracting more candidates does not necessarily mean attracting more highly qualified candidates.

The results highlight the importance of local economic and political conditions in determining how financial incentives shape who enters local government.

Limitations and the road ahead

The study focuses on political entry and does not examine how higher pay affects politicians’ behavior, decision-making, or governance once in office. The authors point out that future research will need to assess whether higher remuneration ultimately translates into changes in policy outcomes, administrative effectiveness, or accountability — and whether these effects differ for newly elected politicians.