Hostname: page-component-7479d7b7d-qlrfm Total loading time: 0 Render date: 2024-07-11T07:16:18.009Z Has data issue: false hasContentIssue false

How the Workplace Affects Employee Political Contributions

Published online by Cambridge University Press:  31 August 2021

JAN STUCKATZ*
Affiliation:
Institute for Advanced Study in Toulouse, France

Abstract

How important is the workplace for employees’ political donations? Contrary to research on workplace political mobilization, existing work assumes that most individual donors contribute ideologically. I link donations of employees and Political Action Committees (PACs) from 12,737 U.S. public companies between 2003 and 2018 to show that 16.7% of employee donations go to employer-PAC-supported candidates. I investigate the dynamics between employee and PAC donations within firm–legislator pairs over time and find that both rank-and-file employees and executives contribute more dollars to company-supported politicians. Firm–employee donation alignment is stronger on powerful and ideologically moderate politicians with high value for the employer. Results from a difference-in-differences design further show modest changes in the partisan composition of employee donations after swift changes in the partisan donations of corporate PACs. The results suggest investment-related rather than ideological motives for alignment and highlight the importance of corporations for money in politics.

Type
Research Article
Copyright
© The Author(s), 2021. Published by Cambridge University Press on behalf of the American Political Science Association

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Ahlquist, John S., Clayton, Amanda B., and Levi, Margaret. 2014. “Provoking Preferences: Unionization, Trade Policy, and the ILWU Puzzle.” International Organization 68 (1): 3375.CrossRefGoogle Scholar
Alt, James E., Carlsen, Fredrik, Heum, Per, and Johansen, Kare. 1999. “Asset Specificity and the Political Behavior of Firms: Lobbying for Subsidies in Norway.” International Organization 53 (1): 99116.CrossRefGoogle Scholar
Alvarez, Michael R., Katz, Jonathan N., and Silvia Kim, Seo-young. 2020. “Hidden Donors: The Censoring Problem in U.S. Federal Campaign Finance Data.” Election Law Journal: Rules, Politics, and Policy 19 (1): 118.CrossRefGoogle Scholar
Ansolabehere, Stephen, de Figueiredo, John M., and Snyder, James M.. 2003. “Why Is There so Little Money in U.S. Politics?Journal of Economic Perspectives 17 (1): 105–30.CrossRefGoogle Scholar
Austen-Smith, David. 1995. “Campaign Contributions and Access.” American Political Science Review 89 (3): 566–81.CrossRefGoogle Scholar
Autor, David, Dorn, David, Katz, Lawrence, Patterson, Christina, and Van Reenen, John. 2017. “The Fall of the Labor Share and the Rise of Superstar Firms.” NBER Working Paper 23396.CrossRefGoogle Scholar
Azar, José, Marinescu, Ioana, and Steinbaum, Marshall I.. 2017. “Labor Market Concentration.” NBER Working Paper 24147.CrossRefGoogle Scholar
Bafumi, Joseph, and Herron, Michael C.. 2010. “Leapfrog Representation and Extremism: A Study of American Vorters and Their Members in Congress.” American Political Science Review 104 (3): 519–42.CrossRefGoogle Scholar
Barber, Michael J. 2016a. “Donation Motivations: Testing Theories of Access and Ideology.” Political Research Quarterly 69 (1): 148–59.CrossRefGoogle Scholar
Barber, Michael J. 2016b. “Ideological Donors, Contribution Limits, and the Polarization of American Legislatures.” Journal of Politics 78 (1): 296310.CrossRefGoogle Scholar
Barber, Michael J., Canes-Wrone, Brandice, and Thrower, Sharece. 2017. “Ideologically Sophisticated Donors: Which Candidates Do Individual Contributors Finance?American Journal of Political Science 61 (2): 271–88.CrossRefGoogle Scholar
Becher, Michael, Stegmueller, Daniel, and Käppner, Konstantin. 2018. “Local Union Organization and Law Making in the US Congress.” Journal of Politics 80 (2): 539–54.CrossRefGoogle Scholar
Berry, Christopher R., and Fowler, Anthony. 2018. “Congressional Committees, Legislative Influence, and the Hegemony of Chairs.” Journal of Public Economics 158: 111.CrossRefGoogle Scholar
Bertrand, Marianne, Bombardini, Matilde, and Trebbi, Francesco. 2014. “Is It Whom You Know or What You Know? An Empirical Assessment.” American Economic Review 104 (12): 3885–20.CrossRefGoogle Scholar
Bonica, Adam. 2013. “Ideology and Interests in the Political Marketplace.” American Journal of Political Science 57 (2): 294311.CrossRefGoogle Scholar
Bonica, Adam. 2014. “Mapping the Ideological Marketplace.” American Journal of Political Science 58 (2): 367–86.CrossRefGoogle Scholar
Bonica, Adam.2016a. “Avenues of Influence: On the Political Expenditures of Corporations and Their Directors and Executives.” Business and Politics 18 (4): 367–94.CrossRefGoogle Scholar
Bonica, Adam.2016b. Database on Ideology, Money in Politics, and Elections: Public version 2.0 [Computer file]. Stanford, CA: Stanford University Libraries. https://data.stanford.edu/dimeGoogle Scholar
Bonica, Adam, Rosenthal, Howard, Blackwood, Kristy, and Rothman, David J.. 2021. “Ideological Sorting of Physicians in Both Geography and the Workplace.” Journal of Health Politics, Policy, and Law 45 (6): 1023–57.CrossRefGoogle Scholar
Broockman, David, and Malhotra, Neil. 2018. “What Do Donors Want? Heterogeneity by Party and Policy Domain.” Stanford University Graduate School of Business. Research Paper 19–10.Google Scholar
Busch, Marc L., and Reinhardt, Eric. 2000. “Geography, International Trade, and Political Mobilization in U.S. Industries.” American Journal of Political Science 44 (4): 703–19.CrossRefGoogle Scholar
Cagé, Julia. 2020. The Price of Democracy. Cambridge, MA: Harvard University Press.CrossRefGoogle Scholar
CFO. 2004. “Office Politics.” CFO Magazine, July 12. http://ww2.cfo.com/risk-compliance/2004/07/office-politics-2/Google Scholar
Cheng, J. Yo-Jud, and Groysberg, Boris. 2020. “How Corporate Cultures Differ around the World.” Harvard Business Review, January. https://hbr.org/2020/01/how-corporate-cultures-differ-around-the-world.Google Scholar
CPA. 2019. “Past CPA-Zicklin Index Reports.” Political Accountablility.net. https://politicalaccountability.net/index/past-cpa-zicklin-index-reports-2.Google Scholar
Drutman, Lee. 2015. The Business of America is Lobbying. Oxford: Oxford University Press.CrossRefGoogle Scholar
Ensley, Michael J. 2009. “Individual Campaign Contributions and Candidate Ideology.” Public Choice 138 (1–2): 221–38.CrossRefGoogle Scholar
Federal Election Commission (FEC). 2021. “Federal Election Commission (FEC) Enforcement Statistics for Fiscal Years 1977–2021.” https://www.fec.gov/resources/cms-content/documents/enforcementstats1977to2021.pdf.Google Scholar
Feigenbaum, James, Hertel-Fernandez, Alexander, and Williamson, Vanessa. 2018. “From the Bargaining Table to the Ballot Box: Political Effects of Right to Work Laws.” NBER Working Paper Series 24259: 170.Google Scholar
Fouirnaies, Alexander, and Hall, Andrew B.. 2014. “The Financial Incumbency Advantage: Causes and Consequences.” Journal of Politics 76 (3):711–24.CrossRefGoogle Scholar
Fouirnaies, Alexander, and Hall, Andrew B.. 2016. “The Exposure Theory of Access: Why Some Firms Seek More Access to Incumbents Than Others.” Stanford University. Working Paper. https://stanforddpl.org/papers/fouirnaies_hall_exposure_2016/fouirnaies_hall_exposure_2016.pdf.CrossRefGoogle Scholar
Fouirnaies, Alexander, and Hall, Andrew B.. 2018. “How Do Interest Groups Seek Access to Committees?American Journal of Political Science 62 (1): 132–47.CrossRefGoogle Scholar
Fowler, Anthony, Garro, Haritz, and Spenkuch, Jörg L.. 2020. “Quid Pro Quo? Corporate Returns to Campaign Contributions.” Journal of Politics 82 (3): 844–58.CrossRefGoogle Scholar
Francia, Peter L. 2003. The Financiers of Congressional Elections Investors, Ideologues, and Intimates. New York: Columbia University Press.Google Scholar
Gimpel, James G., Lee, Frances E., and Pearson-Merkowitz, Shanna. 2008. “The Check Is in the Mail: Interdistrict Funding Flows in Congressional Elections.” American Journal of Political Science 52 (2): 373–94.CrossRefGoogle Scholar
Gordon, Sanford C., Hafer, Catherine, and Landa, Dimitri. 2007. “Consumption or Investment? On Motivations for Political Giving.” Journal of Politics 69 (4): 1057–72.CrossRefGoogle Scholar
Gupta, Abhinav, and Wowak, Adam J.. 2017. “The Elephant (or Donkey) in the Boardroom: How Board Political Ideology Affects CEO Pay.” Administrative Science Quarterly 62 (1): 130.CrossRefGoogle Scholar
Hall, Richard L., and Wayman, Frank W.. 1990. “Buying Time: Moneyed Interests and the Mobilization of Bias in Congressional Committees.” American Political Science Review 84 (3): 797820.CrossRefGoogle Scholar
Hansen, Wendy L., Mitchell, Neil J., and Drope, Jeffrey M.. 2005. “The Logic of Private and Collective Action.” American Journal of Political Science 49 (1): 150–67.CrossRefGoogle Scholar
Heerwig, Jennifer A. 2017. “Money in the Middle: Contribution Strategies among Affluent Donors to Federal Elections, 1980–2008.” American Journal of Sociology 123 (4): 1004–63.CrossRefGoogle Scholar
Hertel-Fernandez, Alexander. 2018. Politics at Work: How Companies Turn Their Workers into Lobbyists—and Why Americans Should Care. New York: Oxford University Press.Google Scholar
Hill, Seth J., and Huber, Gregory A.. 2017. “Representativeness and Motivations of the Contemporary Donorate: Results from Merged Survey and Administrative Records.” Political Behavior 39 (1): 329.CrossRefGoogle Scholar
Kalla, Joshua L., and Broockman, David E.. 2016. “Campaign Contributions Facilitate Access to Congressional Officials: A Randomized Field Experiment.” American Journal of Political Science 60 (3): 545–58.CrossRefGoogle Scholar
Kim, In Song. 2017. “Political Cleavages within Industry: Firm-Level Lobbying for Trade Liberalization.” American Political Science Review 111 (1): 120.CrossRefGoogle Scholar
Kim, In Song. 2018. “LobbyView: Firm-Level Lobbying and Congressional Bills Database.” MIT. Working Paper. http://web.mit.edu/insong/www/pdf/lobbyview.pdf.Google Scholar
Kim, Sung Eun, and Margalit, Yotam. 2017. “Informed Preferences? The Impact of Unions on Workers’ Policy Views.” American Journal of Political Science 61 (3): 728–43.CrossRefGoogle Scholar
Raya, La, Raymond, J., and Schaffner, Brian F.. 2015. Campaign Finance and Political Polarization. Ann Arbor: University of Michigan Press.Google Scholar
Langbein, Laura I. 1986. “Money and Access: Some Empirical Evidence.” Journal of Politics 48 (4): 1052–162.CrossRefGoogle Scholar
Lewis, Jeffrey B., Poole, Keith, Rosenthal, Howard, Boche, Adam, Rudkin, Aaron, and Sonnet, Luke. 2021. Voteview: Congressional Roll-Call Votes Database [Computer file]. UCLA Department of Political Science and Social Science Computing [Distributor]. https://voteview.com/.Google Scholar
Li, Zhao. 2018. “How Internal Constraints Shape Interest Group Activities: Evidence from Access-Seeking PACs.” American Political Science Review 112 (4): 792808.CrossRefGoogle Scholar
Macdonald, David. 2021. “How Labor Unions Increase Political Knowledge: Evidence from the United States.” Political Behavior 43: 124.CrossRefGoogle Scholar
Mares, Isabela, and Young, Lauren. 2016. “Buying, Expropriating, and Stealing Votes.” Annual Review of Political Science 19: 267–88.CrossRefGoogle Scholar
Martin, Cathie Jo, and Swank, Duane. 2012. The Political Construction of Business Interests: Coordination, Growth, and Equality. New York: Cambridge University Press.CrossRefGoogle Scholar
McConnell, Christopher, Margalit, Yotam, Malhotra, Neil, and Levendusky, Matthew. 2018. “The Economic Consequences of Partisanship in a Polarized Era.” American Journal of Political Science 62 (1): 518.CrossRefGoogle Scholar
Milyo, Jeffrey, Primo, David, and Groseclose, Timothy. 2000. “Corporate PAC Campaign Contributions in Perspective.” Business and Politics 2 (1): 7588.CrossRefGoogle Scholar
Mummolo, Jonathan, and Peterson, Erik. 2018. “Improving the Interpretation of Fixed Effects Regression Results.” Political Science Research and Methods 6 (4): 829–35.CrossRefGoogle Scholar
Lee, Na-Kyung, Haillie, , and Liou, Yu-Ming. 2019. “Where You Work Is Where You Stand: A Firm-Based Theory of Trade Opinion.” Working Paper. Seoul National University.Google Scholar
Olson, Mancur. 1965. The Logic of Collective Action. Public Goods and the Theory of Groups. Cambridge, MA: Harvard University Press.Google Scholar
Osgood, Iain. 2018. “Globalizing the Supply Chain: Firm and Industrial Support for US Trade Agreements.” International Organization 72 (2): 455–84.CrossRefGoogle Scholar
Poole, Keith T., Romer, Thomas, and Rosenthal, Howard. 1987. “The Revealed Preferences of Political Action Committees.” American Economic Review 77 (2): 298302.Google Scholar
Powell, Eleanor Neff, and Grimmer, Justin. 2016. “Money in Exile: Campaign Contributions and Committee Access.” Journal of Politics 78 (4): 974–88.CrossRefGoogle Scholar
Richter, Brian Kelleher, and Werner, Timothy. 2017. “Campaign Contributions from Corporate Executives in Lieu of Political Action Committees.” Journal of Law, Economics, and Organization 33 (3): 443–74.CrossRefGoogle Scholar
Snyder, James M. 1992. “Long-Term Investing in Politicians; or, Give Early, Give Often.” The Journal of Law and Economics 35 (1): 1543.CrossRefGoogle Scholar
Stuckatz, Jan. 2020. “Political Alignment between Firms and Employees in the United States: Evidence from a New Dataset.” Political Science Research and Methods, 111. doi:10.1017/psrm.2020.19.Google Scholar
Stuckatz, Jan. 2021. “Replication Data for: How the Workplace Affects Employee Political Contributions.” Harvard Dataverse. Dataset. https://doi.org/10.7910/DVN/GHRHU7.CrossRefGoogle Scholar
Tullock, Gorden. 1972. “The Purchase of Politicians.” Western Economic Journal 10 (3): 354–55.Google Scholar
Unsal, Omer, Hassan, M. Kabir, and Zirek, Duygu. 2016. “Corporate Lobbying, CEO Political Ideology and Firm Performance.” Journal of Corporate Finance 38: 126–49.CrossRefGoogle Scholar
Volden, Craig, and Wiseman, Alan E.. 2014. Legislative Effectiveness in the United States Congress. The Lawmakers. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Supplementary material: Link

Stuckatz Dataset

Link
Supplementary material: PDF

Stuckatz supplementary material

Stuckatz supplementary material

Download Stuckatz supplementary material(PDF)
PDF 519.3 KB
Submit a response

Comments

No Comments have been published for this article.