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Marriage Networks, Nepotism, and Labor Market Outcomes in China

  • Shing-Yi Wang

This paper considers the role of marriage in improving labor market outcomes through the expansion of an individual's networks. I focus on the impact of the relationship with the father-in-law on a young man's career using panel data from China. The identification strategy isolates the network effects related to a man's father-in-law by examining the post-marriage death of a father-in-law. The estimates suggest that the loss of the father-in-law translates into a decrease in a man's earnings of 7 percent.

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Article provided by American Economic Association in its journal American Economic Journal: Applied Economics.

Volume (Year): 5 (2013)
Issue (Month): 3 (July)
Pages: 91-112

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Handle: RePEc:aea:aejapp:v:5:y:2013:i:3:p:91-112
Note: DOI: 10.1257/app.5.3.91
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  1. Lori A. Beaman, 2012. "Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 128-161.
  2. Fali Huang & Ginger Zhe Jin & Lixin Colin Xu, 2012. "Love and Money by Parental Matchmaking: Evidence from Urban Couples in China," American Economic Review, American Economic Association, vol. 102(3), pages 555-60, May.
  3. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
  4. Kugler, Adriana, 2002. "Employee Referrals and Efficiency Wages," IZA Discussion Papers 633, Institute for the Study of Labor (IZA).
  5. Chong-En Bai & Jiangyong Lu & Zhigang Tao, 2006. "The Multitask Theory of State Enterprise Reform: Empirical Evidence from China," American Economic Review, American Economic Association, vol. 96(2), pages 353-357, May.
  6. Jordi Blanes i Vidal & Mirko Draca & Christian Fons-Rosen, 2010. "Revolving Door Lobbyists," CEP Discussion Papers dp0993, Centre for Economic Performance, LSE.
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