Because China maintains its system of one-party control by the Chinese Communist Party, it is argued that the Communist Party (CP) membership may result in a wage premium to party members. However, the impact of CP membership is not clear based on economic theories and hypotheses, and the evidence from empirical studies is also mixed, as it shows both positive and negative results. In this paper, we aim to perform a meta-analysis to examine the impact of CP membership on wage levels and investigate empirical evidence using 332 estimates extracted from 30 extant studies. The results of the meta-synthesis suggest that even though the effect size of CP membership is small, it is clear that CP membership positively affects wage levels. Testing for publication selection bias indicates that the collected estimates contain genuine empirical evidence. Moreover, the meta-regression analysis of literature heterogeneity shows that empirical evidence reported in previous studies is strongly and systematically determined by a series of study conditions such as the type of target ownership , the nature of the survey data, the wage percentiles used, the type of wage variables included, the estimation periods, and the utilization of various control variables.
View full abstract