MPs Wages
bere the How much should an MP earn? Chris Dillow applies Adam Smith's theory of compensating advantages to provide one take. But we can also look at simple opportunity cost. If wages are low we'd expect to find those who find the power and prestige (and other non-pecunirary perks) especially valuable - if you're simply trying to maximise income you'd work in the city. But imagine three types of job: teachers, journalists and lawyers. Whereas a lawyer can professionally benefit from experience within government, a teacher cannot. Also, a lawyer can have a more flexible career where parts of it are spent on sabattatical. A teacher must work rigid hours, with little opportunity to take a break (apart from the long summer holiday).
So the lower the salary, the more we'd expect those in jobs that can act as complements to being an MP - such as a lawyer - to occupy government positions. If we want people like teachers to participate, we'd need to pay enought to justify them leaving their jobs.
Personally I think they're overpaid, but economic analysis can help align our instincts with some reasoning. I think an ambition to go into government is a pretty disturbing thing - get a job in the private sector and know that your wages are being earnt because people value what you do, and are willing to voluntarily pay you to do it.
What about your journalists Anthony?
When you think about it, there are actually financial perks to being an MP - like being able to get a gin and tonic for about £1.50 in one of the many bars at Westminster, and the availability of similarly cheap food. Take it from me - I've been an 'arts professional' for over three years now and the economic benefits of a lunch meeting far outweigh the nutritional or professional ones!
Posted by: Andrew Mellor | December 08, 2005 at 05:19 PM
What about your journalists Anthony?
When you think about it, there are actually financial perks to being an MP - like being able to get a gin and tonic for about £1.50 in one of the many bars at Westminster, and the availability of similarly cheap food. Take it from me - I've been an 'arts professional' for over three years now and the economic benefits of a lunch meeting far outweigh the nutritional or professional ones!
Posted by: Andrew Mellor | December 08, 2005 at 05:20 PM
A good point, definately worth repeating!
Posted by: AJE | December 08, 2005 at 05:56 PM