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Does it pay to be a cadre? Estimating the returns to being a local official in rural China

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  • Zhang, Jian
  • Giles, John
  • Rozelle, Scott
Abstract
Recruiting and retaining leaders and public servants at the grass-roots level in developing countries creates a potential tension between providing sufficient returns to attract talent and limiting the scope for excessive rent-seeking behavior. In China, researchers have frequently argued that village cadres, who are the lowest level of administrators in rural areas, exploit personal political status for economic gain. Much existing research, however, compares the earnings of cadre and non-cadre households in rural China without controlling for unobserved dimensions of ability that are also correlated with success as entrepreneurs or in non-agricultural activities. The findings of this paper suggest a measurable return to cadre status, but the magnitudes are not large and provide only a modest incentive to participate in village-level public administration. The paper does not find evidence that households of village cadres earn significant rents from having a family member who is a cadre. Given the increasing return to non-agricultural employment since China’s economic reforms began, it is not surprising that the return to working as a village cadre has also increased over time. Returns to cadre-status (such as they are) are derived both from direct compensation and subsidies for cadres and indirectly through returns earned in off-farm employment from businesses and economic activities managed by villages.

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  • Zhang, Jian & Giles, John & Rozelle, Scott, 2012. "Does it pay to be a cadre? Estimating the returns to being a local official in rural China," Journal of Comparative Economics, Elsevier, vol. 40(3), pages 337-356.
    • Handle: RePEc:eee:jcecon:v:40:y:2012:i:3:p:337-356
    DOI: 10.1016/j.jce.2012.04.006
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. All Politics Might Be Local, but the Returns to Local Politics Are Frugal
      by Marc F. Bellemare in Marc F. Bellemare on 2012-07-12 14:00:42

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    6. Wang, Wen & Li, Qiang & Lien, Donald, 2016. "Human capital, political capital, and off-farm occupational choices in rural China," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 412-422.
    7. Zou, Baoling & Mishra, Ashok K., 2024. "Modernizing Smallholder Agriculture and Achieving Food Security: An Exploration in Machinery Services and Labor Reallocation in China," IZA Discussion Papers 17008, Institute of Labor Economics (IZA).
    8. Jin, Yanhong & Fan, Maoyong & Cheng, Mingwang & Shi, Qinghua, 2014. "The economic gains of cadre status in rural China: Investigating effects and mechanisms," China Economic Review, Elsevier, vol. 31(C), pages 185-200.
    9. Tingqiu Cao & Xianhang Qian, 2021. "Political Capital and Household Income: Evidence from Twenty-Four Transition Countries," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 151-165, March.
    10. Markussen, Thomas & Ngo, Quang-Thanh, 2019. "Economic and non-economic returns to communist party membership in Vietnam," World Development, Elsevier, vol. 122(C), pages 370-384.
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    14. Xian Liang & Hui Xiao & Fangmiao Hou & Xuan Guo & Lishan Li & Longjunjiang Huang, 2024. "Breaking the chains of poverty: examining the influence of smartphone usage on multidimensional poverty in rural settings," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
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    More about this item

    Keywords

    Village political economy; Public sector labor markets; Returns to political status; Rural China;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

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