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Job Contact Networks and Wages of Rural-Urban Migrants in China

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  • Long, Wenjin

    (University of Nottingham)

  • Appleton, Simon

    (University of Nottingham)

  • Song, Lina

    (University of Nottingham)

Abstract

In nationally representative household data from the 2008 wave of the Rural to Urban Migration in China survey, nearly two thirds of rural-urban migrants found their employment through family members, relatives, friends or acquaintances. This paper investigates why the use of social network to find jobs is so prevalent among rural-urban migrants in China, and whether migrants face a wage penalty as a result of adopting this job search method. We find evidence of positive selection effects of the use of networks on wages. Users of networks tend to be older, to have migrated longer ago and to be less educated. In addition, married workers and those from villages with more out-migrant are more likely to use networks, while those without local residential registration status are less likely. Controlling for selectivity, we find a large negative impact of network use on wages. Using job contacts brings open access to urban employment, but at the cost of markedly lower wages.

Suggested Citation

  • Long, Wenjin & Appleton, Simon & Song, Lina, 2013. "Job Contact Networks and Wages of Rural-Urban Migrants in China," IZA Discussion Papers 7577, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp7577
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    References listed on IDEAS

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    Cited by:

    1. 岩﨑, 一郎 & Iwasaki, Ichiro & 馬, 欣欣 & Ma, Xin Xin, 2019. "現代中国における男女賃金格差: メタ分析による接近," Discussion Paper Series 689, Institute of Economic Research, Hitotsubashi University.
    2. Chen, Yuanyuan & Wang, Le & Zhang, Min, 2017. "Informal Search, Bad Search? The Effects of Job Search Method on Wages among Rural Migrants in Urban China," IZA Discussion Papers 11058, Institute of Labor Economics (IZA).
    3. Yao, Yao & Chen, George S. & Salim, Ruhul & Yu, Xiaojun, 2018. "Schooling returns for migrant workers in China: Estimations from the perspective of the institutional environment in a rural setting," China Economic Review, Elsevier, vol. 51(C), pages 240-256.
    4. Ha, Wei & Yi, Junjian & Yuan, Ye & Zhang, Junsen, 2016. "The dynamic effect of rural-to-urban migration on inequality in source villages: System GMM estimates from rural China," China Economic Review, Elsevier, vol. 37(C), pages 27-39.
    5. Catia Batista & Ana Isabel Costa, 2016. "Assessing the role of social networks on migrant labor market outcomes: Evidence from a representative immigrant survey," NOVAFRICA Working Paper Series wp1601, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    6. Iwasaki, Ichiro & Ma, Xinxin, 2020. "Gender Wage Gap in China: A Large Meta-Analysis," CEI Research Paper Series 2020-5, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    7. Giulietti, Corrado & Wahba, Jackline & Zenou, Yves, 2018. "Strong versus weak ties in migration," European Economic Review, Elsevier, vol. 104(C), pages 111-137.
    8. Iwasaki, Ichiro & Ma, Xinxin, 2020. "Gender wage gap in China: a large meta-analysis," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54, pages 1-17.
    9. Fang, Tony & Gunderson, Morley & Lin, Carl, 2016. "The use and impact of job search procedures by migrant workers in China," China Economic Review, Elsevier, vol. 37(C), pages 154-165.
    10. Liang, Zhe & Appleton, Simon & Song, Lina, 2016. "Informal Employment in China: Trends, Patterns and Determinants of Entry," IZA Discussion Papers 10139, Institute of Labor Economics (IZA).
    11. Yuanyuan Chen & Le Wang & Min Zhang, 2018. "Informal search, bad search?: the effects of job search method on wages among rural migrants in urban China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(3), pages 837-876, July.
    12. Xiong, Ailun & Li, Hongyi & Westlund, Hans & Pu, Yongjian, 2017. "Social networks, job satisfaction and job searching behavior in the Chinese labor market," China Economic Review, Elsevier, vol. 43(C), pages 1-15.
    13. Galanakis, Yannis, 2020. "Female Human Capital Mismatch: An extension for the British public sector," GLO Discussion Paper Series 669, Global Labor Organization (GLO).
    14. LIU Yang, 2015. "The Role of Individual Social Capital in Wage Determination: Evidence from China," Discussion papers 15133, Research Institute of Economy, Trade and Industry (RIETI).
    15. Catia Batista & Ana Isabel Costa, 2016. "Assessing the role of social networks on migrant labor market outcomes: Evidence from a representative immigrant survey," FEUNL Working Paper Series novaf:wp1601, Universidade Nova de Lisboa, Faculdade de Economia.
    16. Temitayo A. Adeyemo & Victor O. Okoruwa, 2018. "Value Addition and Productivity Differentials in the Nigerian Cassava System," Sustainability, MDPI, vol. 10(12), pages 1-22, December.

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    More about this item

    Keywords

    social network; job contact; wage; rural-urban migrants; switching regression; China;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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