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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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  15. Simon, Curtis J & Warner, John T, 1992. "Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 306-30, July.
  16. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  17. Peter J. Kuhn & Kailing Shen, 2011. "Gender Discrimination in Job Ads: Theory and Evidence," NBER Working Papers 17453, National Bureau of Economic Research, Inc.
  18. Bai, Chong-En & Li, David D. & Tao, Zhigang & Wang, Yijiang, 2000. "A Multitask Theory of State Enterprise Reform," Journal of Comparative Economics, Elsevier, vol. 28(4), pages 716-738, December.
  19. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
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