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

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  • Weng, Yulei
  • Xu, Hao

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.

Suggested Citation

  • Weng, Yulei & Xu, Hao, 2018. "How guanxi affects job search outcomes in China? Job match and job turnover," China Economic Review, Elsevier, vol. 51(C), pages 70-82.
    • Handle: RePEc:eee:chieco:v:51:y:2018:i:c:p:70-82
    DOI: 10.1016/j.chieco.2018.05.006
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    Cited by:

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    3. Jiang, Shengjun & Guo, Yilan, 2022. "Reasons for college major-job mismatch and labor market outcomes: Evidence from China," China Economic Review, Elsevier, vol. 74(C).
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    More about this item

    Keywords

    Guanxi; Job match; Job turnover; China;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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