Can Social Networks Increase the Migrant's Wage: Analysis Based on Mechanism and Heterogeneity

PAN Li-qun; ZHANG Shao-hua

Volume 37 Issue 2

Mar. 2022

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Article Navigation > Journal of Guangdong University of Finance & Economics > 2022 > 37(2): 15-28

PAN Li-qun, ZHANG Shao-hua. Can Social Networks Increase the Migrant's Wage: Analysis Based on Mechanism and Heterogeneity[J]. Journal of Guangdong University of Finance & Economics, 2022, 37(2): 15-28.

Citation:

PAN Li-qun, ZHANG Shao-hua. Can Social Networks Increase the Migrant's Wage: Analysis Based on Mechanism and Heterogeneity[J]. Journal of Guangdong University of Finance & Economics, 2022, 37(2): 15-28.

Citation:

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Can Social Networks Increase the Migrant's Wage: Analysis Based on Mechanism and Heterogeneity

School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China

Received Date: 2021-03-16
Available Online: 2022-04-24
Publish Date: 2022-03-28

Abstract

Abstract

The role of social networks in the labor market has always been controversial, especially for a special group of migrants in the Chinese urban labor market. Based on the data from China Migrants Dynamic Survey (CMDS) in 2016, this paper systematically examines the impact of social networks on migrants' wage from the aspects of influence degree, mechanism analysis and heterogeneity analysis. The study found that social networks cannot help migrants increase their wages, and compared with formal channels, the wages that migrants obtain through social networks are 7.9% lower, for their social networks are thought to be low-level networks with weak ability signals. Specifically, compared with the weak relationship of fellow villagers and friends, the strong relationship network of relatives has a greater negative impact on wages; with the improvement of the professional level, the influence of social networks shows a weakening trend. Therefore, it can be concluded that broadening and formalizing the search methods for employment, improving their human capital through education and training are effective ways to raise the wage level of migrants.
- social networks,
- migrants,
- network hierarchy,
- weak ability signal,
- employment,
- wage level,
- wage

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References(27)

References

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