| By: |
Ma, Yuanyuan (University College Dublin);
Walsh, Patrick Paul (University College Dublin) |
| Abstract: |
The "dual-track approach" for transition would have to be facilitated by an
endogenous movement of workers away from the state into private jobs. Yet,
using the Chinese Household Income Project Series (CHIPs) data for the year
2002, we document preferences and premiums for state jobs in urban China over
private jobs. The state sector attracted the best workers in more favorable
industries and regions and offered higher earning premiums. In addition,
family party membership is found to be instrumental in allocating workers into
state jobs which explains a good deal of the earnings differentials in terms
of an endogenous state premium. |
| Keywords: |
labor mobility, earnings differentials, party networks, state jobs, urban China |
| JEL: |
J42 J62 O15 P23 R23 |
| Date: |
2013–09 |
| URL: |
http://d.repec.org/n?u=RePEc:iza:izadps:dp7643&r=cna |