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

► We examine income returns to cadre status in rural China. ► We find a modest income return of 9.5% to cadre status. ► Returns to cadres derive from cadre wages and off farm employment in collective. ► The political capital associated with cadre status depreciates quickly. ► A view of rampant corruption at the grass-root level of cadres is not supported.