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| Do higher MPs wages encourage corruption? | Do higher MPs wages encourage corruption? |
| (3 months later) | |
| News today that MPs may receive a £10,000 pay rise has renewed debates about how much it too much when it comes to our legislators' salaries. One argument is that lower wages encourage corruption by making MPs reliant on outside sources of money - but it's also been argued that higher wages can lead to unscrupulous dealings. Which way does the evidence point? | News today that MPs may receive a £10,000 pay rise has renewed debates about how much it too much when it comes to our legislators' salaries. One argument is that lower wages encourage corruption by making MPs reliant on outside sources of money - but it's also been argued that higher wages can lead to unscrupulous dealings. Which way does the evidence point? |
| Incomes compared: representatives and represented | Incomes compared: representatives and represented |
| When the Independent Parliamentary Standards Authority (Ipsa) published its first review of MPs' pay and expenses in October 2012, they sought to put the expenses scandal in context. So, as well as comparing MPs' pensions to those in the civil, fire and police services they considered how foreign MPs are renumerated. | When the Independent Parliamentary Standards Authority (Ipsa) published its first review of MPs' pay and expenses in October 2012, they sought to put the expenses scandal in context. So, as well as comparing MPs' pensions to those in the civil, fire and police services they considered how foreign MPs are renumerated. |
| Legislators' Compared | Legislators' Compared |
| Annual Incomes | Annual Incomes |
| UK MPs may feel a bit short-changed when looking at their colleagues in Italy and Australia whose annual incomes are almost twice the British standard. Those numbers however don't mean much without some kind of socio-economic context - GDP per capita might suggest how legislators economic well-being compares to the national standard of living.* | UK MPs may feel a bit short-changed when looking at their colleagues in Italy and Australia whose annual incomes are almost twice the British standard. Those numbers however don't mean much without some kind of socio-economic context - GDP per capita might suggest how legislators economic well-being compares to the national standard of living.* |
| On that measure, British parliamentarians may feel that they fare slightly better. UK MPs earn 3.1 times the national wealth per citizen, while in Norway legislators can only expect 2.5x the GDP per capita and in Spain it is a mere 1.6x. Italy's MPs top the list of inflated wallets, earning 9.4 times the national GDP per capita. | On that measure, British parliamentarians may feel that they fare slightly better. UK MPs earn 3.1 times the national wealth per citizen, while in Norway legislators can only expect 2.5x the GDP per capita and in Spain it is a mere 1.6x. Italy's MPs top the list of inflated wallets, earning 9.4 times the national GDP per capita. |
| Interestingly, Ipsa only felt it was appropriate to draw comparisons with other developed countries, most western. That is not because policy makers in the poorest countries receive a pittance - often, far from it. | Interestingly, Ipsa only felt it was appropriate to draw comparisons with other developed countries, most western. That is not because policy makers in the poorest countries receive a pittance - often, far from it. |
| Kenyan MPs recently conceded to a pay cut from $120,000 a year to $75,000 (as well as a one-off $59,000 grant to buy a vehicle). That concession might not seem quite so noble given that the average income a Kenyan can expect to receive is about $1,700 a year (£1,116). | Kenyan MPs recently conceded to a pay cut from $120,000 a year to $75,000 (as well as a one-off $59,000 grant to buy a vehicle). That concession might not seem quite so noble given that the average income a Kenyan can expect to receive is about $1,700 a year (£1,116). |
| Correlating corruption | Correlating corruption |
| Ever since the start of the expenses scandal, debates about MPs' incomes have been closely tied up with questions about their integrity. We recently uncovered the £7m that MPs had managed to rack up from outside work. | Ever since the start of the expenses scandal, debates about MPs' incomes have been closely tied up with questions about their integrity. We recently uncovered the £7m that MPs had managed to rack up from outside work. |
| Many have expressed concerns that if their salaries are not raised, MPs may be unable to resist the lucrative lure of lobbying groups. Others believe that the country's representatives should be motivated by something other than material gain and that wages closer to the national average will deter those who are more inclined towards corruption in the first place. | Many have expressed concerns that if their salaries are not raised, MPs may be unable to resist the lucrative lure of lobbying groups. Others believe that the country's representatives should be motivated by something other than material gain and that wages closer to the national average will deter those who are more inclined towards corruption in the first place. |
| Transparency International's annual index on corruption in the public sector might provide some help for a reality check here. What happens when we compare a country's corruption score to the pay gap between MPs and citizens? | Transparency International's annual index on corruption in the public sector might provide some help for a reality check here. What happens when we compare a country's corruption score to the pay gap between MPs and citizens? |
| This is how we tested the trend: Take MPs salaries as a percentage of GDP per capita (horizontal axis) and compare it to a country's corruption score (vertical axis, lower number means more corrupt). The interactive chart below shows the results. | This is how we tested the trend: Take MPs salaries as a percentage of GDP per capita (horizontal axis) and compare it to a country's corruption score (vertical axis, lower number means more corrupt). The interactive chart below shows the results. |
| There is a correlation, although not a very strong one (a p-value of 0.0143 for the statistically inclined - anything less than 0.05 is considered significant). Italy provides the clearest example, receiving the worst score for corruption and demonstrating the biggest discrepancy between MPs salaries and national income. | There is a correlation, although not a very strong one (a p-value of 0.0143 for the statistically inclined - anything less than 0.05 is considered significant). Italy provides the clearest example, receiving the worst score for corruption and demonstrating the biggest discrepancy between MPs salaries and national income. |
| It seems we have reason to be concerned that higher wages may not attract individuals with the best credentials on corruption. But given that the correlation is so weak and that there are so many other factors which are relevant here (not least the legislation that holds policy makers to account) a £10,000 pay rise is unlikely to make British politicians as squeaky clean as Denmark's or as corrupt as Somalia's - the least and most corrupt countries in the world according to Transparency International. | It seems we have reason to be concerned that higher wages may not attract individuals with the best credentials on corruption. But given that the correlation is so weak and that there are so many other factors which are relevant here (not least the legislation that holds policy makers to account) a £10,000 pay rise is unlikely to make British politicians as squeaky clean as Denmark's or as corrupt as Somalia's - the least and most corrupt countries in the world according to Transparency International. |
| How much do you think MPs should be paid? Share your views by posting a comment below or voting in our poll here. | How much do you think MPs should be paid? Share your views by posting a comment below or voting in our poll here. |
| * GDP per capita is a very crude measure of wealth (it is calculated by dividing the total output of a country by the number of inhabitants) but is one of the few internationally comparable measures that are regularly updated. Given that the cost of living also varies from country to country, another economic indicator, purchasing power parities (PPPs) might be better suited for future comparisons. | * GDP per capita is a very crude measure of wealth (it is calculated by dividing the total output of a country by the number of inhabitants) but is one of the few internationally comparable measures that are regularly updated. Given that the cost of living also varies from country to country, another economic indicator, purchasing power parities (PPPs) might be better suited for future comparisons. |
| Full disclosure: The author of this article worked for Transparency International from September 2011 to January 2013. | Full disclosure: The author of this article worked for Transparency International from September 2011 to January 2013. |
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