nep-cna New Economics Papers
on China
Issue of 2013‒10‒25
one paper chosen by
Zheng Fang
Ohio State University

  1. Party Membership and State Jobs in Urban China By Ma, Yuanyuan; Walsh, Patrick Paul

  1. 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

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