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Does guanxi matter to nonfarm employment?

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  • Zhang, Xiaobo
  • Li, Guo

Abstract

Because land is scarce, farmers in China increasingly have to rely on nonfarm activities to enhance their incomes. The functioning of rural nonfarm labor markets is therefore crucial in determining who has access to nonfarm employment. Previous studies have identified human capital as a key factor determining the selection of workers in the rural nonfarm economy. Using a detailed household survey of northern and northeastern China, this paper shows that guanxi (social networks), has also played an important role. With limited nonfarm job opportunities and poor market information, farmers with better social contacts are more likely to obtain nonfarm jobs. Moreover, guanxi has a larger effect on the nonfarm employment opportunities of male workers than female workers.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 31 (2003)
Issue (Month): 2 (June)
Pages: 315-331

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Handle: RePEc:eee:jcecon:v:31:y:2003:i:2:p:315-331

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Web page: http://www.elsevier.com/locate/inca/622864

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Cited by:
  1. Zhao Chen & Shiqing Jiang & Ming Lu & Hiroshi Sato, 2008. "How do Heterogeneous Social Interactions affect the Peer Effect in Rural-Urban Migration?:Empirical Evidence from China," LICOS Discussion Papers, LICOS - Centre for Institutions and Economic Performance, KU Leuven 22408, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  2. McGuire, William & Fleisher, Belton & Sheldon, Ian M., 2007. "Off-Farm Employment Opportunities and Educational Attainment in Rural China," China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China, International Agricultural Trade Research Consortium 55029, International Agricultural Trade Research Consortium.
  3. Vendryes, Thomas, 2011. "Migration constraints and development: Hukou and capital accumulation in China," China Economic Review, Elsevier, Elsevier, vol. 22(4), pages 669-692.
  4. Ying Pan, . "Born with The Right Surname: Lineage Networks and Political and Economic Opportunities in Rural China," Departmental Working Papers, Department of Economics, Louisiana State University 2011-15, Department of Economics, Louisiana State University.
  5. Xing, Li & Fan, Shenggen & Luo, Xiaopeng & Zhang, Xiaobo, 2006. "Village Inequality in Western China," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia, International Association of Agricultural Economists 25390, International Association of Agricultural Economists.
  6. Gruère, Guillaume & Giuliani, Alessandra & Smale, Melinda, 2006. "Marketing underutilized plant species for the benefit of the poor: a conceptual framework," EPTD discussion papers, International Food Policy Research Institute (IFPRI) 154, International Food Policy Research Institute (IFPRI).
  7. Cui, Yuling & Nahm, Daehoon & Tani, Massimiliano, 2012. "The Determinants of Rural Migrants' Employment Choice in China: Results from a Joint Estimation," IZA Discussion Papers 6968, Institute for the Study of Labor (IZA).
  8. Zhang, Junfu & Zhao, Zhong, 2011. "Social-Family Network and Self-Employment: Evidence from Temporary Rural-Urban Migrants in China," IZA Discussion Papers 5446, Institute for the Study of Labor (IZA).
  9. Ming Lu & Jianzhi Zhao, 2009. "The Contribution of Social Networks to Income Inequality in Rural China: A Regression-Based Decomposition and Cross-Regional Comparison," Global COE Hi-Stat Discussion Paper Series, Institute of Economic Research, Hitotsubashi University gd08-019, Institute of Economic Research, Hitotsubashi University.
  10. Di Falco, Salvatore & Chavas, Jean-Paul & Smale, Melinda, 2006. "Farmer management of production risk on degraded lands: the role of wheat genetic diversity in Tigray Region, Ethiopia," EPTD discussion papers, International Food Policy Research Institute (IFPRI) 153, International Food Policy Research Institute (IFPRI).
  11. Chen, Yuanyuan & Feng, Shuaizhang, 2009. "Parental Education and Wages: Evidence from China," IZA Discussion Papers 4218, Institute for the Study of Labor (IZA).
  12. Linacre, Nicholas & Falck-Zepeda, José & Komen, John & MacLaren, Donald, 2006. "Risk assessment and management of genetically modified organisms under Australia's Gene Technology Act:," EPTD discussion papers, International Food Policy Research Institute (IFPRI) 157, International Food Policy Research Institute (IFPRI).
  13. Smale, Melinda & Zambrano, Patricia & Falck-Zepeda, José & Gruère, Guillaume, 2006. "Parables: applied economics literature about the impact of genetically engineered crop varieties in developing economies," EPTD discussion papers, International Food Policy Research Institute (IFPRI) 158, International Food Policy Research Institute (IFPRI).
  14. Long, Wenjin & Appleton, Simon & Song, Lina, 2013. "Job Contact Networks and Wages of Rural-Urban Migrants in China," IZA Discussion Papers 7577, Institute for the Study of Labor (IZA).
  15. Kleinwechter, Ulrich & Grethe, Harald, 2012. "Trade policy impacts under alternative land market regimes in rural China," China Economic Review, Elsevier, Elsevier, vol. 23(4), pages 1071-1089.
  16. Winters, Paul & Davis, Benjamin & Carletto, Gero & Covarrubias, Katia & Quiñones, Esteban J. & Zezza, Alberto & Azzarri, Carlo & Stamoulis, Kostas, 2009. "Assets, Activities and Rural Income Generation: Evidence from a Multicountry Analysis," World Development, Elsevier, Elsevier, vol. 37(9), pages 1435-1452, September.
  17. Haggblade, Steven & Hazell, Peter B. R. & Reardon, Thomas Anthony (ed.), 2007. "Transforming the rural nonfarm economy: Opportunities and threats in the developing world," IFPRI books, International Food Policy Research Institute (IFPRI), International Food Policy Research Institute (IFPRI), number 978-0-8018-8664-5.
  18. Ding, Lan & Li, Haizheng, 2012. "Social networks and study abroad — The case of Chinese visiting students in the US," China Economic Review, Elsevier, Elsevier, vol. 23(3), pages 580-589.
  19. Yuanyuan Chen & Shuaizhang Feng, 2011. "Parental education and wages: Evidence from China," Frontiers of Economics in China, Springer, Springer, vol. 6(4), pages 568-591, December.
  20. Falck Zepeda, José & Barreto-Triana, Nancy & Baquero-Haeberlin, Irma & Espitia-Malagón, Eduardo & Fierro-Guzmán, Humberto & López, Nancy, 2006. "An exploration of the potential benefits of integrated pest management systems and the use of insect resistant potatoes to control the Guatemalan Tuber Moth (Tecia solanivora Povolny) in Ventaquemada,," EPTD discussion papers, International Food Policy Research Institute (IFPRI) 152, International Food Policy Research Institute (IFPRI).

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