Replication Data for: Socialization, Self-Selection, and the Life Experiences of World Leaders: Why Business Experience Influences Defense Spending

Studies suggest that the life experiences of politicians influence their behavior in office. Yet the underlying reasons for behavioral differences we observe are often unclear. One possible explanation is socialization, meaning that individuals change their beliefs or behavior as a result of their pre-office experiences. Another possibility is self-selection, implying that individuals choose experiences based on their existing beliefs. We design a study that allows us to empirically isolate these two mechanisms in one particular context: business experience among heads of government. Leveraging variation in the timing of business experience, we compare leaders who worked in the business world before assuming public office with those who entered the business world only after assuming office. An analysis of defense expenditures in 17 NATO countries from 1952 to 2010 indicates that a socialization effect, rather than a selection effect, best explains why former business leaders spend less on national defense.