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Does Guanxi matter to nonfarm employment?:

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Author Info
Zhang, Xiaobo
Li, Guo

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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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Paper provided by International Food Policy Research Institute (IFPRI) in its series EPTD discussion papers with number 74.

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Date of creation: 2001
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Handle: RePEc:fpr:eptddp:74

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Keywords: Employment; Nonagricultural Rural areas China.; Social networks China.;

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  5. Koo, Bonwoo & Wright, Brian D., 1999. "Dynamic implications of patenting for crop genetic resources:," EPTD discussion papers 51, International Food Policy Research Institute (IFPRI). [Downloadable!]
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    Other versions:
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    Other versions:
  22. Pender, John L., 1999. "Rural population growth, agricultural change and natural resource management in developing countries: a review of hypotheses and some evidence from Honduras," EPTD discussion papers 48, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  25. Pender, John L. & Scherr, Sara J., 1999. "Organizational development and natural resource management: evidence from central Honduras," EPTD discussion papers 49, International Food Policy Research Institute (IFPRI). [Downloadable!]
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