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How guanxi affects job search outcomes in China? Job match and job turnover

Yulei Weng and Hao Xu

China Economic Review, 2018, vol. 51, issue C, 70-82

Abstract: Using a social network is an effective way to carry out a job search. This study examines whether Chinese social network, guanxi, leads to better job-worker match and less job turnover. Using a two-dimensional measurement of guanxi, the results of logistic regressions indicate that guanxi is actively used by job seekers who do not match to the employers’ requirements. This finding implies that guanxi may be unfairly used during job searches. Meanwhile, survival analysis shows that guanxi does not lead to less job turnover. The implication of this study is that guanxi should be used for informational purposes, which would enable job seekers and potential employers to avoid information asymmetry in the job search process.

Keywords: Guanxi; Job match; Job turnover; China (search for similar items in EconPapers)
JEL-codes: J64 J63 O15 (search for similar items in EconPapers)
Date: 2018
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China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

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