Income Premium For Political Capital-An Estimate Of The Use Of Imperfect Instrumental Variables

Economics often assumes a non-personified market,but that is not the case.The elite,using the social network relationship formed under the management of past rights,continued to acquire resources in the process of transformation,forming a market combining with non-market forces.Political capital,as one of the actual factors of production,is embedded in the market mechanism,participates in the production of the final product,and therefore obtains rent.Under the background of China's special economic transition and corresponding multi-ownership coexistence,can political capital bring excess income in the labor market,and what is its transmission mechanism?This paper establishes a theoretical model based on general equilibrium with two types of consumers:political identity and no political identity,trying to explain the channels of political capital rent generation,and discusses the lack of "capability"variables in the theoretical model.The impact,resulting in a higher political capital premium than the old literature on endogenous sources.The data used CGSS2008,CGSS 2015,a total of six years of cross-sectional data,and mainly use the two years of CGSS2013 and CGSS2008 data to explore the identification of political capital premium and the transmission mechanism of political capital premium.The remaining data was used as the heterogeneity analysis for the year,and the CHIPS 2013 data was used as the robustness test.In the empirical strategy,this paper adopts the;"combination boxing",which mainly adopts the tool variable method after the relaxation of the exogenous hypothesis in the literature as the identification strategy.The identification strategy was constructed using a variety of novel imperfect instrumental variable methods,and the pros and cons of the tool variables often used in traditional literature were discussed in detail.This paper also provides an estimate of the corrective bias when the CIA condition is not met in the robustness test to deal with the possible endogeneity between individual political capital and its income.Under the identification strategy of this paper,the premium value of party membership is found to be between 14.79%and 21.7%,and multiple sensitivity tests and robustness tests are used.The empirical results are similar.