Social Networks and Household Incomes: Evidence from China
42 Pages Posted: 12 Aug 2020
Date Written: July 12, 2020
We evaluate the association between social networks and household incomes using a panel dataset of representative households in China constructed from the 2011 and 2013 waves of the China Household Financial Survey (CHFS). The results show that social networks are positively associated with the probability and proportion of the various types of incomes. In addition, the positive association is greater for households in rural areas or western regions. Moreover, social networks mainly affect various types of incomes through improved financial sophistication, higher job position level, close government connections, and great accessibility to operating loans. Our findings highlight the importance of social networks in poverty alleviation and household welfare in China.
Keywords: Social Networks, Household Incomes, Social Status, China
JEL Classification: G14, G18, G28
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