Social Networks and Labor Market Entry Barriers: Understanding Inter-industrial Wage Differentials in Urban China
An entry barrier in the labor market can be an important source of wage inequality. This paper finds that social networks, father's education and political status, and urban household registration status (hukou identity), as well as their own education, experience, age, and gender, help people enter high-wage industries. When contrasting coastal and inland samples, after instrumenting social networks by household political identity (based on classifications during the land reform in the 1950s), we find that social networks are more helpful for entering high-wage industries. The implication of this paper is: breaking industrial entry barriers in the urban labor market is an essential policy in order to control inter-industrial wage inequality in urban China.
|Date of creation:||Sep 2009|
|Date of revision:|
|Contact details of provider:|| Postal: 2-1 Naka, Kunitachi City, Tokyo 186|
Web page: http://www.ier.hit-u.ac.jp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hiroshi Sato & Li Shi, 2008.
"Class Origin, Family Culture, and Intergenerational Correlation of Education in Rural China,"
Global COE Hi-Stat Discussion Paper Series
gd08-007, Institute of Economic Research, Hitotsubashi University.
- Sato, Hiroshi & Li, Shi, 2007. "Class Origin, Family Culture, and Intergenerational Correlation of Education in Rural China," IZA Discussion Papers 2642, Institute for the Study of Labor (IZA).
- Sato, Hiroshi & Li, Shi, 2007. "Class Origin, Family Culture, and Intergenerational Correlation of Education in Rural China," Discussion Papers 2006-19, Graduate School of Economics, Hitotsubashi University.
- Haisken-DeNew, John P. & Schmidt, Christoph M., 1999. "Industry Wage Differentials Revisited: A Longitudinal Comparison of Germany and USA (1984-1996)," IZA Discussion Papers 98, Institute for the Study of Labor (IZA).
- Paul Chen & Per-Anders Edin, 2002.
"Efficiency Wages and Industry Wage Differentials: A Comparison Across Methods of Pay,"
The Review of Economics and Statistics,
MIT Press, vol. 84(4), pages 617-631, November.
- Chen, P. & Edin, P.A., 1996. "Efficiency Wages and Industry Wages Differentials : A Comparison Across Methods of Pay," Papers 314, Australian National University - Department of Economics.
- Lukiyanova Anna, 2006. "Wage Inequality in Russia (1994–2003)," EERC Working Paper Series 06-03e, EERC Research Network, Russia and CIS.
- Sato, Hiroshi & Li, Shi, 2007. "Revolution and Family in Rural China: Influence of Family Background on Current Family Wealth," IZA Discussion Papers 3223, Institute for the Study of Labor (IZA).
- Björklund, Anders & Bratsberg, Bernt & Eriksson, Tor & Jäntti, Markus & Raaum, Oddbjørn, 2004. "Inter-Industry Wage Differentials and Unobserved Ability: Siblings Evidence from Five Countries," IZA Discussion Papers 1080, Institute for the Study of Labor (IZA).
- J. S. Arbache, 2001. "Wage Differentials in Brazil: Theory and Evidence," Journal of Development Studies, Taylor & Francis Journals, vol. 38(2), pages 109-130.
- Meng, Xin & Zhang, Junsen, 2001. "The Two-Tier Labor Market in Urban China: Occupational Segregation and Wage Differentials between Urban Residents and Rural Migrants in Shanghai," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 485-504, September.
- Zhao Chen & Ming Lu & Guanghua Wan, 2010. "Inter-Industry Wage Differentials: An Increasingly Important Contributor to Urban China Income Inequality," Global COE Hi-Stat Discussion Paper Series gd09-130, Institute of Economic Research, Hitotsubashi University.
When requesting a correction, please mention this item's handle: RePEc:hst:ghsdps:gd09-084. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tatsuji Makino)
If references are entirely missing, you can add them using this form.