Role of Individual Social Capital in Wage Determination: Evidence from China

Yang, Lei

doi:10.1111/asej.12122

Cited by 6 publications

(4 citation statements)

References 17 publications

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“…We find that this variable had a positive impact on the earnings of males (among gender groups), Hindus (among religious groups), and APL1 (among consumption quintiles). Our results are in line with the findings of a study based in China (Liu, 2017), where individual-level social capital was found to have a greater impact on men than women. Similar effects were reported by (Smith, 2000) in the context of the United States.…”

Section: Discussionsupporting

confidence: 92%

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How Much do Education, Experience, and Social Networks Impact Earnings in India? A Panel Data Analysis Disaggregated by Class, Gender, Caste and Religion

Hussain,

Mukhopadhyay

2023

Sage Open

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We estimate the returns (measured by hourly earnings) to education, experience, and social networking in India using individual-level panel data from the India Human Development Surveys. We combined the two latest waves of this survey using individual-level identifiers to generate a balanced panel and merged it with various household characteristics. We provide estimates of private returns for an additional year of education and experience by consumption quintiles, gender, caste, and religion in a fixed-effects Heckman model that controls for selection bias. This methodology improves upon estimates of all earlier studies on earnings in India, as most of the literature has relied on cross-section data or pseudo-panel data. We also examine the impact of social networking on earnings, which is under-explored in nationwide studies in India. We find that education significantly and positively affects earnings for all consumption quintiles, gender, caste (except schedule castes), and religious groups. Among economic groups, the highest returns are observed for the third quintile above the poverty line. Returns to females for an additional year of education are nearly double that of males but the difference in starting earnings keeps earnings of males higher for long periods. Among the castes, scheduled castes have the highest returns to education and other minorities among religious groups. Social networking positively impacts males, Hindus, and the quintile just above the poverty line. Experience positively impacts women’s earnings, general caste and scheduled caste, Hindus and Other minorities and two consumption quintiles (two and five) above the poverty line.

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Section: Discussionsupporting

confidence: 92%

“…Social networking has been found to influence individual earnings in China (Liu, 2017), United States (Smith, 2000), Sweden (Behtoui & Neergaard, 2010) as well as India (Deshpande & Khanna, 2021). We added an indicator of social networking to the outcome equation (Networking Intensity).…”

Section: Methodsmentioning

confidence: 99%

How Much do Education, Experience, and Social Networks Impact Earnings in India? A Panel Data Analysis Disaggregated by Class, Gender, Caste and Religion

Hussain,

Mukhopadhyay

2023

Sage Open

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“…They found that the quality (Wanberg, 2012), the scale (Allen, 2000) and the diversity (Stoloff et al, 1999) of social capital had a significant and positive effect on several important aspects, that is, the information of job opportunities (Calvo-Armengol & Jackson 2007;Reis & Ferreira, 2015), likelihood of receiving job offers (Easley & Kleinberg, 2010;Van Hoye et al, 2009) and re-employment (Cingano & Rosolia, 2012;Van Hoye et al, 2009). The social capital acquired by a job seeker is also associated with the employee's benefits, such as increasing the welfares of workers, reducing the leave rate of employees (Boyas et al, 2012), decreasing the ability of being dismissed (Zhao, 2002) and increasing the monetary and non-monetary wages of workers (Franzen & Hangartner, 2006;Liu, 2017).…”

Section: Introductionmentioning

confidence: 99%

The Role of Social Capital on the Searching Behaviours of a Job Seeker in the Multiple Labour Markets

Thanh

Bích

2021

Studies in Microeconomics

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This study aims to build a two-stage theoretical model to analyse the role of social capital on the searching behaviours of a job seeker in two different markets. As the advantage of the social capital in either market triggers the reservation wages in both two markets equally, the job seeker should prioritize his or her resources enhancing a larger amount of the social capital in a particular market. Consequently, the job seeker tends to search more intensively in the market where she or he has a higher level of social capital. That is the seeker can shorten the expected searching time. The proposed model also explains why the job seeker sometimes chooses the 2nd highest wage offer instead of the highest one. JEL Classifications: C02, D83, J64

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“…Similarly, Huang found that college-educated job seekers gained little advantage from guanxi in their job search but rather their credentials and qualifications were more important [27]. On the other hand, several scholars have produced evidence that guanxi networks retain significance in wages and job attainment [4,6,7,38]. Moreover, Lin argued that guanxi networks were conducive to navigating economic activities in the form of "centrally managed capitalism" emerging in China [33].…”

Section: Introductionmentioning

confidence: 99%

Social Networks and Workers’ Earnings in Contemporary China

Wallace

2020

East Asia

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Guanxi is the central form of social capital in Chinese society that provides access to resources, assets, and benefits that facilitate social status and social mobility. Substantial empirical research has documented the importance of guanxi networks in accessing resources for getting good jobs, moving up to better jobs, and achieving higher wages. Chinese Lunar New Year is a special occasion of cultural and social significance to cultivate and maintain guanxi networks. We thus conceptualize guanxi networks as the visiting networks during the Chinese New Year celebration. Using the 2008 Chinese General Social Survey, we construct five measures of the Chinese New Year greeting networks and assess their impact on workers’ earnings as well as gender differences in their effects on earnings. We also consider two major structural constraints—the hukou and social class—that affect the extent of one’s social networks and earnings. Our findings not only confirm the overall positive effects of the Chinese New Year greeting networks on earnings but also offer nuances that enhance the understanding of how guanxi networks as a manifestation of social capital embedded in Chinese traditional culture work in the contemporary era and intensify gender gaps.

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Role of Individual Social Capital in Wage Determination: Evidence from China

Cited by 6 publications

References 17 publications

How Much do Education, Experience, and Social Networks Impact Earnings in India? A Panel Data Analysis Disaggregated by Class, Gender, Caste and Religion

How Much do Education, Experience, and Social Networks Impact Earnings in India? A Panel Data Analysis Disaggregated by Class, Gender, Caste and Religion

The Role of Social Capital on the Searching Behaviours of a Job Seeker in the Multiple Labour Markets

Social Networks and Workers’ Earnings in Contemporary China

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