Hidden Income and Occupational Background: evidence from Guangzhou

Abstract

Using a unique dataset based on a survey conducted by the Guangzhou Land Resources and Housing Administrative Bureau from November 2009 to January 2010, this article examines the sources and distribution of the hidden income of residents from different occupational backgrounds, taking into consideration their explicit income and other socio-economic characteristics. The results show that government officials not only had the highest but also the most stable hidden income, followed by employees in state-owned enterprises and employees in colleges or research institutions. Among government officials, those holding higher-level positions possessed more hidden income than those in lower-level positions. These findings have implications for China's labour market, taxation and resource allocation, and need to be taken into consideration in future economic and political policy designs and implementations.