Political Capital and Household Income: Evidence from Twenty-Four Transition Countries

Tingqiu Cao () and Xianhang Qian ()
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Tingqiu Cao: Shandong University
Xianhang Qian: Shandong University

Journal of Family and Economic Issues, 2021, vol. 42, issue 1, No 10, 165 pages

Abstract: Abstract Using data from 24 transition countries, we investigated the impact of political capital on household income and further examined the role of market transition. We found that households with Communist Party members had higher income, but market transition could mitigate the effect, and it persisted after addressing endogeneity concerns. Household members’ work in state sectors, social networks, and trust level of households’ heads were impacting mechanisms. Heterogeneity analyses demonstrated that each member’s political capital could heighten household income and market transition could weaken the effect. Market transitions reduced the advantage of political capital in both urban and rural areas, though the effect was larger in rural areas.

Keywords: Political capital; Market transition; Household income; Transition countries (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s10834-020-09708-6

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