Party Membership and State Jobs in Urban China

47 Pages Posted: 19 Oct 2013

See all articles by Yuanyuan Ma

Yuanyuan Ma

Zhongnan University of Economics and Law; Trinity College (Dublin)

Patrick Paul Walsh

UCD; Institute for the Study of Labor (IZA)

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 Classification: J42, J62, O15, P23, R23

Suggested Citation

Ma, Yuanyuan and Walsh, Patrick Paul, Party Membership and State Jobs in Urban China. IZA Discussion Paper No. 7643, Available at SSRN: https://ssrn.com/abstract=2342495 or http://dx.doi.org/10.2139/ssrn.2342495

Yuanyuan Ma (Contact Author)

Zhongnan University of Economics and Law

No.182, Nanhu Avenue
Wuhan, Hubei 430073
China

Trinity College (Dublin) ( email )

2-3 College Green
Dublin, Leinster D2
Ireland

Patrick Paul Walsh

UCD ( email )

University College Dublin
Belfield, Dublin Dublin 4
Ireland

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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