The role of social capital in the labour market in China
AbstractSocial capital is considered to play an economic role in labour markets. It may be particularly pertinent in one that is in transition from an administered to a market-oriented system. One factor that may determine success in the underdeveloped Chinese labour market is thus "guanxi", the Chinese variant of social capital. With individual-level measures of social capital, we test for the role of "guanxi" using a dataset designed for this purpose, covering 7,500 urban workers and conducted in early 2000. The evidence is consistent with the basic hypothesis. Both measures of social capital - size of social network and Communist Party membership - have significant and substantial coefficients in the income functions. Social capital can have influence either in an administered system or in one subject to market forces. It appears to do so in both parts of the labour market. Copyright (c) 2008 The Authors. Journal compilation (c) 2008 The European Bank for Reconstruction and Development.
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Bibliographic InfoArticle provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.
Volume (Year): 16 (2008)
Issue (Month): 3 (07)
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Other versions of this item:
- John Knight & Linda Yueh, 2002. "The Role of Social Capital in the Labour Market in China," Economics Series Working Papers 121, University of Oxford, Department of Economics.
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
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