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Party Membership and State Jobs in Urban China

Yuanyuan Ma and Patrick Walsh

No 7643, IZA Discussion Papers from Institute of Labor Economics (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 (search for similar items in EconPapers)
JEL-codes: J42 J62 O15 P23 R23 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2013-09
New Economics Papers: this item is included in nep-cna, nep-lab and nep-tra
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Published - published in: Asian Economic Papers, 2017, 16(2), 167-184

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