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The Economics of Communist Party Membership: The Curious Case of Rising Numbers and Wage Premium during China's Transition.

Abstract:
As 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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Publisher copy:
10.1080/00220380802264739

Authors


Publisher:
Taylor and Francis
Journal:
Journal of Development Studies More from this journal
Volume:
45
Issue:
2
Pages:
256 - 275
Publication date:
2009-01-01
DOI:
ISSN:
0022-0388


Language:
English
UUID:
uuid:e873a513-c520-4d79-9b01-8968dbd02478
Local pid:
oai:economics.ouls.ox.ac.uk:14628
Deposit date:
2011-08-16
ARK identifier:

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