Skip Navigation


CESifo Economic Studies Advance Access originally published online on July 23, 2009
CESifo Economic Studies 2009 55(3-4):624-647; doi:10.1093/cesifo/ifp016
This Article
Right arrow Full Text
Right arrow Full Text (PDF)
Right arrow All Versions of this Article:
55/3-4/624    most recent
ifp016v1
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Li, S.
Right arrow Articles by Sato, H.
Related Collections
Right arrow J40 - General
Right arrow O15 - Human Resources; Human Development; Income Distribution; Migration
Right arrow P26 - Political Economy; Property Rights
Right arrow Z13 - Economic Sociology; Economic Anthropology
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

© The Author 2009. Published by Oxford University Press on behalf of Ifo Institute for Economic Research, Munich. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org

Power as a Driving Force of Inequality in China: How Do Party Membership and Social Networks Affect Pay in Different Ownership Sectors?

Shuang Li*, Ming Lu{dagger} and Hiroshi Sato{ddagger}

* Department of Economics, Employment & Social Security Research Center and China Center for Economics Studies, Fudan University, P. R. China. e-mail: 062015148{at}fudan.edu.cn
{dagger} Fudan University and Zhejiang University, P. R. China. e-mail: lm{at}fudan.edu.cn
{ddagger} Department of Economics, Hitotsubashi University, Tokyo, Japan. e-mail: satohrs{at}econ.hit-u.ac.jp. We are grateful to Zhao Chen for his helpful comments. Financial Support from National Social Science Project (07BJL051), "985" project of Fudan University, Shanghai Leading Academic Discipline Project (B101) are greatly acknowledged. All remaining errors are our own. e-mail: ghdeng{at}vip.sina.com. The earlier version of this paper was circulated as Global COE Hi-Stat DP Series No.11 (November, 2008), Hitotsubashi University.

Party membership and social networks, as two forms of nonmarket power, have significant effects on personal income and act as driving forces of inequality in China. Do the effects vary across different ownership sectors (suoyouzhi xingshi)? Using a nationally representative survey of urban households (China Household Income Project surveys in 1995 and 2002), we find that (i) 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 (ii) social networks are insignificant in state-owned enterprises (SOEs), while they contribute significantly to personal income in non-SOE sectors. Our finding does not predict a smaller inequality through lower returns to power during privatization in Chinese economy. (JEL codes: J40, O15, P26, Z13)

Key Words: income • Party membership • social networks • ownership • marketization


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?




Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.