Social and Human Capitals in Chinese Occupational Attainment: 1964–2014

This chapter examines the effects of social capital and human capital on occupational attainment in Chinese cities during a 50-year span from 1964 to 2014. An analysis of a 2014 survey presents the following results: (1) As compared to non-users, users of job-search contacts to gain information or favoritism conduct more extensive search, receive more job offers, and obtain higher entry-level wage. (2) Higher-educated job seekers take more time to complete a search, especially when they use social contacts, leading to higher income return of education. (3) There has been a persistent effect of social capital on income during the process of market transition, even though the influence of favoritism has weakened since China joined the WTO around 2001.