Competitive impact of family background: the effects of cadre parents on the labour market outcomes of their offspring

ABSTRACT

This study investigates the impact of the cadre parent premium on wages and promotions for the experienced labour force in China. It also explores the underlying transmission channels. Approximately 50% of the cadre parent premium can be explained by the close relationship with government officials, managers, and people in publicly owned enterprises. For the offspring in the above-median income group, the cadre parent premium can be explained by the differences in quality of the human capital and the specific job characteristics.

KEYWORDS:

• Intergenerational transfer of privilege
• cadre parents
• wage premium
• social networks

JEL CODE:

• J31
• J62

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

¹ The concept of cadre in China grew from ‘the leaders of masses’ in revolutionary contexts to ‘the political elite and the functionaries staffing the huge party-state apparatus.’ (Lee 1991, p. 5.). Cadres are not necessarily CCP members, and CCP members are not all cadres. Cadres in government are considered ‘leaders,’ different from the ordinary civil servants who are ‘being led.’ Moreover, managers in SOEs are considered cadres since they were once covered by the same personnel management system as government officials. Even after decades of reform, they still share some special linkages to government officials (Yu, Lin, and Jiang 2019). (See http://countrystudies.us/china/113.htm,2/23/14 7:23pm).

² Begun in 2003, CGSS is the first continuous national social survey project in mainland China, which is jointly conducted by Renmin University of China and the University of Hong Kong Science and Technology. We use this wave because it is the only one that contains all the necessary variables needed for this study.

³ This is measured using a dummy that equals one if this individual has been promoted during the past three years.

⁴ This is measured using a dummy that equals one if this individual indicates that it is possible for him/her to be promoted with his/her current employer in the future.

⁵ This is measured using a dummy that equals one if this individual indicates that it is possible for him/her to be promoted if he or she changes employers.

⁶ Acquaintances’ occupations are categorized into three groups: 1) peasants and ordinary workers, including peasants, peasant workers, industrial workers, business and service workers, baby sitters and hourly workers; 2) professionals and technician, including researchers, college professors, teachers, technicians and engineers, doctors and nurses, commercial and sales persons, lawyers and other legal service providers, and private business owners; 3) cadres and managers, including government officials, CCP administrators, and managers of enterprises.