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

By Hongbin Li, Pak-wai Liu, Junsen Zhang, Ning Ma. Social Science Research Network, 2007

172 citations recorded by the source corpus.

This paper estimates the returns to membership of the Chinese Communist Party using unique twins data we collected from China. Our OLS estimate shows that being a Party member increases earnings by 10%, but the within-twin-pair estimate becomes zero. One interpretation of these results is that the OLS Party premium is due to omitted ability and family background. This interpretation would suggest that Party members fare well not because of their special political status per se, but because of the superior ability that made them Party members. The estimates are also consistent with an alternative interpretation that Party membership not only has its own effect but also has an external effect on the sibling.

Subfields: Accounting, Political Science and International Relations, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/d5de83b561bd99d8408649546b0190b4132a529d

How researchers see this paper

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In Accounting

  1. Zhaoyang Hou
  2. M. Emran

In Political Science and International Relations

  1. Zhaoyang Hou
  2. M. Emran

Citations in the corpus