Advances in Economics, Management and Political Sciences
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Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 75 , 17 April 2024
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The Impact of Job Referral from Different Social Connections on Initial Wages: Evidence from Chinese Labor Market
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Abstract
Job referrals are a popular approach to finding a job through social ties. In the Chinese labor market, it is popular to locate jobs through social contacts, which is thought to be a means to earn a higher starting salary. The purpose of this paper was to investigate the disparities in starting salaries across employment found through various social relationships. Based on social network theory, this research added variables to the Mincer-type equation for regression analysis to measure the strength of social relations. The findings of this study, which used data from the China Household Income Project (CHIP 2018), showed that, unlike previous studies that focused on strong ties in the Chinese labor market, jobs found through weak ties have significantly higher starting salaries than jobs found through strong ties, and the difference in starting salaries for jobs found by migrant workers through various social ties is more pronounced. As a result, under the bleak backdrop of the labor market and decreasing economic growth, it was recommended that job seekers, particularly migrant workers, broaden their social circle in order to seek better initial pay.
Keywords
Job Referral, Initial Wage, Weak Ties, Migrant Worker, Chinese Labor Market
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 3rd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-83558-373-9
- ISBN (Online)
- 978-1-83558-374-6
- Published Date
- 17 April 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/75/20241829
- Copyright
- 17 April 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited