The Effect Of Social Capital On The Migrants' Wage

The household contract responsibility system started since the late 1970s greatly released the countryside surplus labor force,they moved to cities one after another,formed a special and important "migrant workers phenomenon" during the period of transition in China.In recent years,with the development of economy and the advancement of urbanization,the migrant workers has become the main body of urbanization.And stable economic income is the key and foundation of the migrant workers to establish themselves in city.Therefore,the wages of migrant workers is a problem that deserves attention.China is a human society,especially in rural areas,network runs through in the whole social life of people,and farmers also formed the habits of using the social capital in the long course of history.And in the process of:flow,migrant workers brought this habit from traditional agricultural society to the industrial and commercial society.In the urban labor market,social capital has played a good role in the transmission progress of employment information.What is the impact of social capital on the Wages of migrant workers?The answer of this question will help us to clarify the decision mechanism of the wages of migrant workers and get more comprehensive understanding of the role of informal institutions in urban labor market.In view of this,this article made a systematic theoretical analysis on the characteristic of the migrant workers who find job by using social capital and the impact of social capital on the wages of migrant workers.On this basis,this article used the data from Rural-Urban Migration in China(RUMIC2009)and used Probit model to make an empirical test about the impact of human capital,social capital and personal characteristic on the use of social capital of the migrant workers,and thus verified the exist of the "self selection" problem during the process of using social capital of migrant workers.In order to deal with the endogenous estimation errors caused by "self selection" problem,this article used multiple linear regression(OLS)and endogenous switching regression model(ESRM)to explore the impact of social capital on the migrant workers' wage level.In addition,considering the change of population structure and the deepening of urbanization,this article explore the impact of social capital on the migrant workers' wage level from the perspective of intergenerational differences.The results showed that:Firstly,network is still the main way of rural migrant workers to apply for a job,the result of the Probit model showed:with higher the human capital stock and greater scale network,migrant worker is less tend to use social capital to apply for a job,and the quality of network has no effect on its find job path;Secondly,for all the migrant workers,migrant worker who choose to use social capital to look for a job obtained higher wages than random samples;Thirdly,there are generational differences of the impact of social capital on the migrant workers1 wage.The social capital in the new generation of migrant workers groups showed negative reinforcement effect,and the negative efifect through affecting its working characteristics to indirectly play a role,so the migrant workers who do not use the social capital obtain a higher wage income;but the social capital in the old generation of migrant workers groups showed positive reinforcement effect,the migrant workers who use the social capital earned more than the average level of wage income;Fourthly,in order to guarantee the reliability of the conclusion,this article used "New Year Spring Festival network scale" as a tool variables,used two-stage least squares(2SLS)method to make a stability analysis,and the regression results still support the conclusion:in general,social capital has a positive influence on migrant workers' wages,but this positive influence is mainly focused on the old migrant workers,social capital have negative effect on the new generation migrant workers.