Economic Returns to Communist Party Membership: Evidence From Urban Chinese Twins

Authors: Li, Hongbin¹; Liu, Pak Wai²; Zhang, Junsen²; Ma, Ning³

Source: The Economic Journal, Volume 117, Number 523, October 2007 , pp. 1504-1520(17)

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Abstract:

This article estimates the returns to membership of the Chinese Communist Party using unique twins data we collected from China. Our OLS estimate shows a Party premium of 10%, but the within-twin-pair estimate becomes zero. One interpretation is that the OLS premium is due to omitted ability and family background. This interpretation suggests that Party members fare well not because of their political status but because of the superior ability that made them Party members. The estimates are also consistent with another interpretation that Party membership not only has its own effect but also has an external effect on siblings.

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1468-0297.2007.02092.x

Affiliations: 1: Chinese University of Hong Kong and Tsinghua University 2: Chinese University of Hong Kong 3: Johns Hopkins University

Publication date: 2007-10-01