Analysis of clans and employment in China from the aspect of gender

A clan is a group of families that are linked by patriarchal blood relationships with one common ancestor. Clans may help members to find jobs and set up businesses through blood‐based networks, but traditional male‐biased norms may lead to different effects on employment between genders. This paper examines the causal effects of clans on the employment statuses of men and women and the gap in the effects between genders. To mitigate the endogeneity issue, we employ the potential rain‐fed rice yield as an instrumental variable to obtain consistent estimates. We find that clans have positive effects on women's probabilities of participating in the labor market and having nonfarming jobs, while the effects on men are not significant. Clans have positive effects on male entrepreneurship but no effects on female entrepreneurship. The results are robust to a host of sensitivity tests. Moreover, we find that the findings are driven mainly by small cities, and clans have larger effects on regions where private enterprises dominate. The dynamic analysis indicates that the gender gap of clan effects decreases with the development of urbanization and marketization.