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Does local social capital deter labour migration? Evidence from rural China

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  • Liqiu Zhao
  • Xianguo Yao

Abstract

This article empirically investigates the effect of local social capital on job-related migration in rural China. A household’s social ties in the region of origin, which we refer to as local social capital, may deter migration, because local social capital is location specific and an individual cannot benefit from it if s/he migrates. In view of Chinese gift-giving culture, we use household expenses on wedding gifts for family members outside household, relatives and friends as a proxy for local social networks. Based on the data from the China Health and Nutrition Survey, we find that in rural China local social networks have a significantly negative effect on migration. The IV results suggest that a 10% increase in wedding gifts expenses results in roughly a 1.1 percentage points decrease in migration probability.

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  • Liqiu Zhao & Xianguo Yao, 2017. "Does local social capital deter labour migration? Evidence from rural China," Applied Economics, Taylor & Francis Journals, vol. 49(43), pages 4363-4377, September.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4363-4377
    DOI: 10.1080/00036846.2017.1282146
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    2. Xin Deng & Miao Zeng & Dingde Xu & Yanbin Qi, 2020. "Does Social Capital Help to Reduce Farmland Abandonment? Evidence from Big Survey Data in Rural China," Land, MDPI, vol. 9(10), pages 1-17, September.
    3. Murphy, David M.A., 2023. "Sobriety, social capital, and village network structures," World Development, Elsevier, vol. 166(C).
    4. Peter Huber & Stepan Mikula, 2019. "Social capital and willingness to migrate in post-communist countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(1), pages 31-59, February.
    5. Haiyang Lu & Ivan T. Kandilov, 2021. "Does Mobile Internet Use Affect the Subjective Well-being of Older Chinese Adults? An Instrumental Variable Quantile Analysis," Journal of Happiness Studies, Springer, vol. 22(7), pages 3137-3156, October.
    6. László Lőrincz & Brigitta Németh, 2022. "How Social Capital is Related to Migration Between Communities?," European Journal of Population, Springer;European Association for Population Studies, vol. 38(5), pages 1119-1143, December.
    7. Julie L. Hotchkiss & Anil Rupasingha, 2021. "Individual social capital and migration," Growth and Change, Wiley Blackwell, vol. 52(2), pages 808-837, June.
    8. Peter Huber & Stepan Mikula, 2018. "Social Capital and Migration Intentions in Post-Communist Countries," WIFO Working Papers 550, WIFO.

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