Abstract:
Our main goal is to quantify the returns to a career in the United States Congress.
We specify a dynamic model of career decisions of a member of Congress and
estimate this model using a newly collected dataset. Given estimates of the structural
model, we assess reelection probabilities, estimate the effect of congressional
experience on private and public sector wages, and quantify the value of a congressional
seat. Moreover, we assess how an increase in the congressional wage or
the imposition of term limits would affect the career decisions of politicians and the
returns from a career in Congress.
