Abstract
We analyze the evolution of wage differentials between party
members and non-members across more than two decades (1995-2018).
We apply the Oaxaca-Blinder composition method to disentangle the
contribution to the wage gap of different levels of human capital from
discrimination against non- members. We also run quantile regressions
to estimate the slope of the wage premium functions applying the
Machado-Mata decomposition. Our results show party wage premium
has decreased over time, but it is still high. There is also evidence of a
widening divergence between urban and rural workers, with the former
getting higher wage premia since 2013, while the latter have lost most of
their return to party membership and is still positive only for workers in
the top quintile. A positive discrimination for CPC members (not
justified by characteristics) started in 2013; the party still recruits elites
but over-pays them for party loyalty more than for their qualifications,
attracting opportunists.
| Lingua originale | Inglese |
|---|---|
| Pagine | 1-34 |
| Numero di pagine | 34 |
| Volume | 351 |
| Stato di pubblicazione | Pubblicato - 2023 |
Keywords
- Communist Party of China (CPC)
- wage premium for CPC membership
- decomposition methods
- China
OSS delle Nazioni Unite
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