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Discussion Paper Details

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Title: How Effective Are Monetary Incentives to Vote? Evidence from a Nationwide Policy

Author(s): Mariella Gonzales, Gianmarco Le�n-Ciliotta and Luis Martinez

Publication Date: July 2019

Keyword(s): compulsory voting, External Validity, Informational frictions, Peru, voter registration and Voter turnout

Programme Area(s): Development Economics and Public Economics

Abstract: We combine two natural experiments, multiple empirical strategies and administrative data to study voters' response to marginal changes to the fine for electoral abstention in Peru. A smaller fine leads to a robust decrease in voter turnout. However, the drop in turnout caused by a full fine reduction is less than 20% the size of that caused by an exemption from compulsory voting, indicating the predominance of the non-monetary incentives provided by the mandate to vote. Additionally, almost 90% of the votes generated by a marginally larger fine are blank or invalid, lending support to the hypothesis of rational abstention. Higher demand for information and larger long-run effects following an adjustment to the value of the fine point to the existence of informational frictions that limit adaptation to institutional changes.

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Bibliographic Reference

Gonzales, M, Le�n-Ciliotta, G and Martinez, L. 2019. 'How Effective Are Monetary Incentives to Vote? Evidence from a Nationwide Policy'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13898