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Are cadre offspring in the fast lane? Evidence from the labour market for college graduates in China

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  • Jingwen Yu
  • Yongzhao Lin
  • Cheng Jiang

Abstract

This paper studies the impact of having a cadre parent on the labour market performance and channels of the intergenerational transference. Using a recent data set, we find that college graduates with a cadre parent earn a wage premium of 4.46% more than those who do not. They also demonstrate advantages in obtaining a household registration (hukou), entering high-level occupations, and achieving job satisfaction. In the discussion on channels, we first show that aggressive self-investment serves as one potential channel but can only explain limited amount of the premiums. To test the other channel – interpersonal network (guanxi), we provide evidence that cadre offspring demonstrate more extensive family network resource and information advantage when searching for jobs. This channel is also supported by the finding that working closer to parents geographically or institutionally would enhance the effect of having a cadre parent.

Suggested Citation

  • Jingwen Yu & Yongzhao Lin & Cheng Jiang, 2019. "Are cadre offspring in the fast lane? Evidence from the labour market for college graduates in China," Applied Economics, Taylor & Francis Journals, vol. 51(36), pages 3920-3946, August.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3920-3946
    DOI: 10.1080/00036846.2019.1584375
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    Cited by:

    1. Chen, Liwen & Chung, Bobby W. & Wang, Guanghua, 2023. "Exposure to socially influential peer parents: Evidence from cadre parents in China," China Economic Review, Elsevier, vol. 78(C).
    2. Liwen Chen & Bobby Chung & Guanghua Wang, 2021. "Exposure to Socially Influential Peer Parents: Evidence from Cadre Parents in China," Working Papers 2021-052, Human Capital and Economic Opportunity Working Group.

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