An Investment Model of Social Capital with Empirical Application to Women`s Labour Market Outcomes in Urban China
AbstractThe move to a more market-oriented economy is associated with evidence of increased inequality in the incomes earned by men and women. The context of our study of this question is the recent large-scale reform of the inefficient state sector, which has caused layoffs of urban workers that dramatically changed the state of employment in urban China. One factor in determining success in an imperfect labour market could be related to guanxi, the Chinese variant of social capital. We develop a model of social capital in which the decision to invest in guanxi is a function of time and resources expended, which may reflect and cause gender differences. Our original measures of social capital are created with a data set administered in urban China in early 2000. We find that there are gender differences in the stock of social capital and returns within the labour market. Women have less social capital than men and also lower economic returns in terms of earned income.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 83.
Date of creation: 01 Dec 2001
Date of revision:
general microeconomics; gender; discrimination; social capital; China;
Find related papers by JEL classification:
- D0 - Microeconomics - - General
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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Harvard Institute of Economic Research Working Papers
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