Does local social capital deter labour migration? Evidence from rural China

This article empirically investigates the effect of local social capital on job-related migration in rural China. A household's social ties in the region of origin, which we refer to as local social capital, may deter migration, because local social capital is location specific and an individua...

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Veröffentlicht in:Applied economics 2017-09, Vol.49 (43), p.4363-4377
Hauptverfasser: Zhao, Liqiu, Yao, Xianguo
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Yao, Xianguo
description This article empirically investigates the effect of local social capital on job-related migration in rural China. A household's social ties in the region of origin, which we refer to as local social capital, may deter migration, because local social capital is location specific and an individual cannot benefit from it if s/he migrates. In view of Chinese gift-giving culture, we use household expenses on wedding gifts for family members outside household, relatives and friends as a proxy for local social networks. Based on the data from the China Health and Nutrition Survey, we find that in rural China local social networks have a significantly negative effect on migration. The IV results suggest that a 10% increase in wedding gifts expenses results in roughly a 1.1 percentage points decrease in migration probability.
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subjects China
Economic analysis
Economic theory
Friendship
gift exchange
Gifts
Labor migration
local social networks
Migration
Nutrition
Occupational mobility
Relatives
Rural areas
Rural communities
Social capital
Social networks
title Does local social capital deter labour migration? Evidence from rural China
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