Based on survey data for Switzerland, new empirical findings on direct demo
cracy are presented. In the first part, the authors show that, on average,
public employees receive lower financial compensation under more direct dem
ocratic institutions. However, top bureaucrats are more constrained in dire
ct democracies and have to be compensated by higher wages for that loss of
power. In the second part, they demonstrate that reported subjective well-b
eing of the population is much higher in jurisdictions with stronger direct
democratic rights. This is not only the case because people value politica
l outcomes higher but also because they derive utility from the political p
rocess itself.