EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/35151
  
Title:The economics of communist party membership: the curious case of rising numbers and wage premium during China's transition PDF Logo
Authors:Appleton, Simon
Knight, John
Song, Lina
Xia, Qingjie
Issue Date:2008
Series/Report no.:IZA Discussion Papers 3454
Abstract:Why is it that, as the Chinese Communist Party has loosened its grip, abandoned its core beliefs, and marketized the economy, its membership has risen markedly along with the economic benefits of joining? We use three national household surveys, spanning eleven years, to answer this question with respect to labour market rewards in urban China. We conceptualize individual demand for Party membership as an investment in political capital that brings monetary rewards in terms of higher wages. This wage premium has risen with the growing wage differentials associated with the emergence of a labour market and the continuing value of political status in the semi-marketized transitional economy. However, a demand-side explanation does not explain the fact that the wage premium is higher for the personal characteristics that reduce the probability of membership. We develop an explanation in terms of a rationing of places and a scarcity value for members with those characteristics.
Subjects:China
Communist Party
labour market
economic transition
wages
JEL:J31
Persistent Identifier of the first edition:urn:nbn:de:101:1-20080421116
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

Files in This Item:
File Description SizeFormat
564785911.pdf197.28 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/35151

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.