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Job Search and Labor Market Outcomes of New Graduates in China: Using the Latest Available Survey Data

Author

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  • Yang Liu

    (Research Institute of Economy, Trade and Industry 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901 JAPAN)

Abstract

This is the first study that uses data collected after the new reform of the household registration system (hukou) on the topic of job search and labor market outcomes of new graduates in China. Data of recent years were collected via an original survey. Results indicate a significant, positive effect of search effort on finding a job, which was rarely observed before the reform. Furthermore, parents¡¯ income contributes significantly to starting wage, but has no significant effect on finding a job. This could be because parents¡¯ income is the source of major financial support for unemployed new graduates in China, theoretically contributing to wages but not affecting job-labor match. Moreover, the study examined details related to graduates¡¯ human capital and found that participation in university activities contributes to higher levels of starting wage upon graduation. The effects of different methods of job search were also examined. In addition, contrary to previous studies using data before the new hukou reform, this study found no significant wage gap between urban hukou graduates and rural hukou graduates.

Suggested Citation

  • Yang Liu, 2017. "Job Search and Labor Market Outcomes of New Graduates in China: Using the Latest Available Survey Data," Review of Economics & Finance, Better Advances Press, Canada, vol. 7, pages 66-79, February.
  • Handle: RePEc:bap:journl:170105
    Note: The author is grateful to anonymous referees, to Makoto Yano, Atsushi Nakajima, Masahisa Fujita, Masayuki Morikawa, Mariko Watanabe, Mitsuhide Hoshino, Yoko Konishi, Yukiko Saito, Akihiko Tamura, Keisuke Kondo, Yoshiyuki Arata, Satoshi Kawamura, and Hongyong Zhang for their helpful comments and suggestions. This work was supported by the Asian CORE Program of the Japan Society for the Promotion of Science, which played a role in conducting the survey of this research.
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    References listed on IDEAS

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    More about this item

    Keywords

    Job seeking; Search effort; Starting wage; Labor productivity; New graduate;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • R19 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Other

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