The Economics of Communist Party Membership: The Curious Case of Rising Numbers and Wage Premium during China's Transition
AbstractAs the Chinese Communist Party has loosened its grip in a more market-oriented economy, why have membership and the economic benefits of joining risen? We use three national household surveys over 11 years to answer this question for wages in urban China. Individual demand for Party membership is treated as an investment in 'political capital' that brings monetary rewards in terms of a wage premium that has risen in recent years. However, this does not explain why the wage premium is higher for the personal characteristics that reduce the probability of membership. Rationing with a scarcity value for members with those characteristics provides an explanation.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Development Studies.
Volume (Year): 45 (2009)
Issue (Month): 2 ()
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Other versions of this item:
- Appleton, Simon & Knight, John & Song, Lina & Xia, Qingjie, 2008. "The Economics of Communist Party Membership: The Curious Case of Rising Numbers and Wage Premium during China’s Transition," IZA Discussion Papers 3454, Institute for the Study of Labor (IZA).
- Appleton, Simon & Song, Lina & Knight, John & Xia, Qingjie, 2006. "The economics of Communist Party membership - The Curious case of rising numbers and wage premium during China’s transition," MPRA Paper 8345, University Library of Munich, Germany, revised Jan 2008.
- J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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