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òòò½Íø Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Politics at Work

  • Emanuele Colonnelli
  • Valdemar Pinho Neto
  • Edoardo Teso
òòò½Íø Review (Forthcoming)

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—surveys, event studies, 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.

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