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The Value of Power in China: How Do Party Membership and Social Networks Affect Pay in Different Ownership Sectors?

Author

Listed:
  • Shuang LI
  • Ming LU
  • Hiroshi Sato

Abstract

Party membership and social networks, as two forms of nonmarket power, have significant effects on personal income. Do the effects vary across different ownership sectors (suoyouzhi xingzhi)? Using a nationally representative survey of urban households (China Household Income Project surveys in 1995 and 2002), we find that (1) party membership can significantly increase personal income, but this effect does not significantly differ between different ownership sectors or between the years 1995 and 2002 and (2) social networks are insignificant in State-Owned Enterprises (SOEs), while they contribute significantly to personal income in non-SOE sectors.

Suggested Citation

  • Shuang LI & Ming LU & Hiroshi Sato, 2008. "The Value of Power in China: How Do Party Membership and Social Networks Affect Pay in Different Ownership Sectors?," Global COE Hi-Stat Discussion Paper Series gd08-011, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:ghsdps:gd08-011
    as

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    File URL: http://gcoe.ier.hit-u.ac.jp/research/discussion/2008/pdf/gd08-011.pdf
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    References listed on IDEAS

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    12. VAN KERM Philippe, 2003. "What Lies Behind Income Mobility? Reranking and Distributional Change in Belgium, Western Germany and the USA," IRISS Working Paper Series 2003-03, IRISS at CEPS/INSTEAD.
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    Cited by:

    1. Shiqing Jiang & Ming Lu & Hiroshi Sato, 2009. "Happiness in the Dual Society of Urban China: Hukou Identity, Horizontal Inequality and Heterogeneous," Global COE Hi-Stat Discussion Paper Series gd08-020, Institute of Economic Research, Hitotsubashi University.
    2. Ming Lu & Jianzhi Zhao, 2009. "The Contribution of Social Networks to Income Inequality in Rural China: A Regression-Based Decomposition and Cross-Regional Comparison," Global COE Hi-Stat Discussion Paper Series gd08-019, Institute of Economic Research, Hitotsubashi University.
    3. repec:lic:licosd:22308 is not listed on IDEAS

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    More about this item

    Keywords

    Income; Party membership; Social networks; Ownership; Maketization;
    All these keywords.

    JEL classification:

    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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