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

Author

Listed:
  • Tingqiu Cao

    (Shandong University)

  • Xianhang Qian

    (Shandong University)

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.

Suggested Citation

  • Tingqiu Cao & Xianhang Qian, 2021. "Political Capital and Household Income: Evidence from Twenty-Four Transition Countries," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 151-165, March.
    • Handle: RePEc:kap:jfamec:v:42:y:2021:i:1:d:10.1007_s10834-020-09708-6
    DOI: 10.1007/s10834-020-09708-6
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    References listed on IDEAS

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    Cited by:

    1. Haojing Shen & Yan Song & Changchun Feng & Zhengying Shan, 2021. "The Influence of Political Capital on Peasants’ Migration Behavior and Its Implications," Land, MDPI, vol. 10(12), pages 1-17, December.

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