Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89991
Authors: 
Ma, Yuanyuan
Walsh, Patrick Paul
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7643
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.
Subjects: 
labor mobility
earnings differentials
party networks
state jobs
urban China
JEL: 
J42
J62
O15
P23
R23
Document Type: 
Working Paper

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