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Legislative scholars have paid almost no attention to explanations for the level of compensation provided to legislators, either within a country or cross-nationally, despite its importance to members and institutions. I posit a simple theory based on state wealth to explain differences in legislative pay. I test this theory using two novel data sets, one on 35 national assemblies, the other on subnational assemblies in Australia, Canada, Germany and the United States. Analysis of these data reveals that national or state wealth is strongly associated with legislator compensation. This finding is consistent with an intriguing analog in the labour economics literature. [ABSTRACT FROM AUTHOR]