The Value of Power in China: How Do Party Membership and Social Networks Affect Pay in Different Ownership Sectors?
AbstractParty membership and social networks, as two forms of nonmarket power, have significant effects on personal income. Do the effects vary across different ownership sectors (suoyouzhi xingzhi)? Using a nationally representative survey of urban households (China Household Income Project surveys in 1995 and 2002), we find that (1) party membership can significantly increase personal income, but this effect does not significantly differ between different ownership sectors or between the years 1995 and 2002 and (2) social networks are insignificant in State-Owned Enterprises (SOEs), while they contribute significantly to personal income in non-SOE sectors.
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Bibliographic InfoPaper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd08-011.
Date of creation: Nov 2008
Date of revision:
Income; Party membership; Social networks; Ownership; Maketization;
Find related papers by JEL classification:
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-12-14 (All new papers)
- NEP-CNA-2008-12-14 (China)
- NEP-NET-2008-12-14 (Network Economics)
- NEP-SOC-2008-12-14 (Social Norms & Social Capital)
- NEP-TRA-2008-12-14 (Transition Economics)
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