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The Value of Power in China: How Do Party Membership and Social Networks Affect Pay in Different Ownership Sectors?

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Author Info
Shuang LI
Ming LU
Hiroshi Sato
Abstract

Party 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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Paper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd08-011.

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Date of creation: Nov 2008
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Handle: RePEc:hst:ghsdps:gd08-011

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Related research
Keywords: 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 - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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  10. Hongbin Li & Pak Wai Liu & Ning Ma & Junsen Zhang, 2005. "Economic Returns to Communist Party Membership: Evidence from Chinese Twins," Discussion Papers 00015, Chinese University of Hong Kong, Department of Economics. [Downloadable!]
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