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Hukou and Graduates’ Job Search in China

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  • Wen Wang
  • Peter G. Moffatt

Abstract

This paper presents evidence that graduates from rural areas, classified as non‐urban Hukou, choose to invest in higher levels of job‐search effort (as measured by number of different search methods used and the number of employers contacted) and also set a lower reservation wage, reflected in acceptance of a lower starting salary, than do comparable graduates of urban Hukou, in China. The former also appear to have higher probabilities of being employed, in terms of both their higher probabilities of receiving offers and, more importantly, their higher probabilities of acceptance. The evidence thus suggests that graduates with non‐urban Hukou face more intense pressure to gain employment in the period leading up to graduation, than do their urban counterparts. More generally, the evidence suggests that effort invested in job search is rewarded in the graduate labor market in China.

Suggested Citation

  • Wen Wang & Peter G. Moffatt, 2008. "Hukou and Graduates’ Job Search in China," Asian Economic Journal, East Asian Economic Association, vol. 22(1), pages 1-23, March.
    • Handle: RePEc:bla:asiaec:v:22:y:2008:i:1:p:1-23
    DOI: 10.1111/j.1467-8381.2008.00266.x
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    References listed on IDEAS

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    Cited by:

    1. Lili Kang & Fei Peng, 2017. "Wage flexibility in the Chinese labour market, 1989–2009," Regional Studies, Taylor & Francis Journals, vol. 51(4), pages 616-628, April.
    2. Wang, Wen & Seifert, Roger, 2017. "Employee referrals: A study of ‘close ties’ and career benefits in China," European Management Journal, Elsevier, vol. 35(4), pages 514-522.
    3. Fang, Tony & Gunderson, Morley & Lin, Carl, 2016. "The use and impact of job search procedures by migrant workers in China," China Economic Review, Elsevier, vol. 37(C), pages 154-165.
    4. Sun, Weizeng & Zhang, Sisi & Lin, Chengtao & Zheng, Siqi, 2021. "How do home purchase restrictions affect elite Chinese graduate students’ job search behavior?," Regional Science and Urban Economics, Elsevier, vol. 87(C).
    5. Yang Liu, 2017. "Job Search and Labor Market Outcomes of New Graduates in China: Using the Latest Available Survey Data," Review of Economics & Finance, Better Advances Press, Canada, vol. 7, pages 66-79, February.

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