Marriage Networks, Nepotism and Labor Market Outcomes in China

39 Pages Posted: 27 May 2011

See all articles by Shing-Yi B. Wang

Shing-Yi B. Wang

University of Pennsylvania - The Wharton School

Date Written: May 9, 2011

Abstract

This paper considers the potential role of marriage in improving labor market outcomes through the expansion of an individuals' networks. I focus on the impact of a father-in-law on a young man's career using panel data from China. Particular features of the Chinese context allows for an identification strategy that isolates the network effects related to a man's father-in-law by comparing the post-marriage death of a father-in-law with the death of a mother-in-law. The estimates suggest that the loss of the father-in-law translates into a decrease in a man's earnings by 20%. Furthermore, the evidence indicates that the decline in wages can be attributed to nepotism rather than a decline in job information.

Suggested Citation

Wang, Shing-Yi B., Marriage Networks, Nepotism and Labor Market Outcomes in China (May 9, 2011). Available at SSRN: https://ssrn.com/abstract=1851825 or http://dx.doi.org/10.2139/ssrn.1851825

Shing-Yi B. Wang (Contact Author)

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

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