The Size of Individual Social Networks and Rural-Urban Migrants’ Wages—Findings from a Survey of Migrants in China’s 6 Provinces and 12 Cities

Yang Renkun, Wang Ruimin () and Tao Ran
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Yang Renkun: School of Economics, Jinan University, Jinan, China
Wang Ruimin: Institute of Marketing Economy, Development Research Center of the State Council, Shenzhen, China
Tao Ran: School of Humanities and Social Science, The Chinese University of Hong Kong, Shenzhen, China

China Finance and Economic Review, 2023, vol. 12, issue 2, 94-112

Abstract: Based on a survey of migrants in 12 cities across four major urbanizing areas in China, this paper empirically studies the impact of the size of individual social networks on the migrants’ wages. After controlling for potential endogeneity using an instrumental variable approach, our empirical results from 2SLS estimation provides no evidence for significant average causal effect of network size on wage. A further exploration of quantile regression analysis with endogeneity issue managed by using the control function approach shows that a significant positive network size effect can only be found in the low-income end.

Keywords: rural-urban migrants; China; social networks; wage returns (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:cferev:v:12:y:2023:i:2:p:94-112:n:5

DOI: 10.1515/cfer-2023-0011

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