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“Power or information”: How social networks affect the self‐employment decision of rural migrants in Beijing?

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  • Jie Zhang
  • Jingyi Ye
  • Chenyu Meng

Abstract

As non‐financial resources, social networks have a pervasive influence on career prospects. However, among social networks, which relationships are most beneficial for self‐employment? This study used survey data from rural–urban migrant workers in Beijing to examine the role of personal networks in rural migrants' self‐employment decisions. Social networks were categorized based on the heterogeneity of occupational status. The analysis revealed that networks related to information exchange are more pivotal than those associated with the influence of migrants' self‐employment decisions. Furthermore, social networks emanating from lower occupational status significantly decreased the likelihood of self‐employment in individuals. Additionally, males and newcomer migrants received greater social support from information‐related networks and were more likely to pursue self‐employment. Our findings indicated that self‐employed migrants earn higher incomes than wage earners, exhibit a greater propensity to settle in Beijing, and report higher satisfaction with their lives and economic status.

Suggested Citation

  • Jie Zhang & Jingyi Ye & Chenyu Meng, 2025. "“Power or information”: How social networks affect the self‐employment decision of rural migrants in Beijing?," Asian Economic Journal, East Asian Economic Association, vol. 39(1), pages 49-74, March.
    • Handle: RePEc:bla:asiaec:v:39:y:2025:i:1:p:49-74
    DOI: 10.1111/asej.12347
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