The Economic Gains of Cadre Status in Rural China: Investigating Effects and Mechanisms

43 Pages Posted: 24 Sep 2014

See all articles by Yanhong Jin

Yanhong Jin

Rutgers, The State University of New Jersey - New Brunswick/Piscataway

Maoyong Fan

Ball State University - Department of Economics

Mingwang Chen

Tong Ji University - School of Economics and Management

Qinghua Shi

Shanghai Jiao Tong University (SJTU)

Date Written: September 22, 2014

Abstract

Using nationally representative rural household panel data from 2003 through 2007 in China, we examine economic gains of cadre status and channels through which cadre status increases household earnings. We find that income of cadre households was approximately 10 percent higher than that of non-cadre households on a per capita basis. The cadre income premium did not come from agricultural income but mainly from non-agricultural sources, especially the income from the village and the government. We also find that cadre income premiums were much larger and more significant in economically advanced regions than in less developed regions and in villages that exhibit higher income inequality than their counterparts. Furthermore, this study shows that newly elected cadre households acquired the economic gains immediately and cadre households lost the economic gains immediately when they lost their cadre status, which implies that the cadre economic gains were less likely attributable to human capital of cadres but mainly due to cadre status. Our findings provide evidence for the ongoing debate on distribution of economic gains during the process of transition.

Suggested Citation

Jin, Yanhong and Fan, Maoyong and Chen, Mingwang and Shi, Qinghua, The Economic Gains of Cadre Status in Rural China: Investigating Effects and Mechanisms (September 22, 2014). China Economic Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2499962

Yanhong Jin (Contact Author)

Rutgers, The State University of New Jersey - New Brunswick/Piscataway ( email )

94 Rockafeller Road
New Brunswick, NJ 08901
United States

Maoyong Fan

Ball State University - Department of Economics ( email )

Whitinger Business Building, room 201
2000 W. University Ave.
Muncie, IN 47306-0340
United States
765-285-5741 (Phone)

HOME PAGE: http://https://sites.google.com/site/maoyongfan/home

Mingwang Chen

Tong Ji University - School of Economics and Management ( email )

1239 Si Ping Lu
Shanghai 200092
China

Qinghua Shi

Shanghai Jiao Tong University (SJTU) ( email )

KoGuan Law School
Shanghai 200030, Shanghai 200052
China

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