Social Networks and Household Incomes: Evidence from China

42 Pages Posted: 12 Aug 2020

See all articles by Kai Wu

Kai Wu

Central University of Finance and Economics (CUFE) - School of Finance

Seiwai Lai

Central University of Finance and Economics (CUFE) - School of Finance

He Sun

Central University of Finance and Economics (CUFE) - School of Finance

Date Written: July 12, 2020

Abstract

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

Suggested Citation

Wu, Kai and Lai, Seiwai and Sun, He, Social Networks and Household Incomes: Evidence from China (July 12, 2020). Available at SSRN: https://ssrn.com/abstract=3649302 or http://dx.doi.org/10.2139/ssrn.3649302

Kai Wu (Contact Author)

Central University of Finance and Economics (CUFE) - School of Finance ( email )

Beijing
China

Seiwai Lai

Central University of Finance and Economics (CUFE) - School of Finance ( email )

Beijing
China

He Sun

Central University of Finance and Economics (CUFE) - School of Finance ( email )

Beijing
China

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
5
Abstract Views
75
PlumX Metrics