All ruling communist parties have allocated career opportunities to th
e loyal in an effort to promote conformity and discipline within their
ranks and among their subjects. Yet little is understood about how th
ese political reward mechanisms operate. I offer a model of selective
political screening and incorporation, using survey data from urban Ch
ina to demonstrate the existence of two distinct career paths that lea
d to a divided elite. One path requires both educational and political
credentials and leads to administrative posts with high prestige, con
siderable authority and clear material privileges; the second path req
uires educational but not political credentials, and leads to professi
onal positions with high occupational prestige but little authority an
d fewer material privileges. This division of the elite and the relati
vely small magnitude of administrators' material privileges reveal som
e striking vulnerabilities in China's political institutions to the gr
owth of a market economy.