The changing faces and roles of communist party membership in China: an empirical analysis based on CHIPS 1988, 1995 and 2002

ABSTRACT This paper analyses the evolution of the Chinese Communist Party (CCP) using micro-data from three nationwide surveys. I examine how party membership affects people’s choice of employment, occupational attainment, and earnings, while including changes in the function of individual attributes and human capital. I endeavor to cover both urban and rural areas and gain a dynamic understanding of the topic. The proportion of people who joined the CCP as they grew older was relatively stable in the three surveys, while the overall education level of party members increased rapidly with time. Party membership and education had a statistically significant and positive effect on non-farm employment choice and earnings, but those effects decreased rapidly over time in rural China. In contrast, party membership and education exerted more and more of an effect on employment choice, occupational attainment, and earnings in urban China. Furthermore, in both rural and urban areas, the rate of return to education and the earnings premium for CCP membership are converging at the same level. This is evidence worthy of attention as it indicates that labor markets throughout the country are becoming integrated.