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Social Networks and the Labour Market Outcomes of Rural to Urban Migrants in China

6th December 2010 2pm, University of Southampton, 58/2097

Corrado Giulietti, Institute for the Study of Labor

In this paper, the role of social networks on the labour market outcomes of rural migrants in China is investigated. Information on the size and quality of the network is derived using data from a unique survey and used to estimate the effect of social networks on wages. The main findings indicate that, for migrants who found a job through informal channels, having a large network and an employed close tie is associated with higher wages. These results are corroborated testing the same models for individuals who found the job through more formal channels. Potential threats to the causal interpretation of the results are discussed and evidence is provided to support the fact that endogeneity issues do not affect substantially the findings