Will Social Skill Effect Personal Income?

With the putting forward of the market reform, income dispatities has inevitably widen. Job searching, employment and personal income has gradually become the focus of research in the field of economists. With the progress of the study, economists found that human capital factors such as education level, individual characteristics were unable to fully explain the cause of the income gap. With the development of social capital theory, academics began to pay attention to the relationship between social skills and social development. Career development is inseparable from the human society and social interaction, social skills has a significant impact on personal career development.This paper analyzes the internal relationships between social skills and personal income, and assume that there are spatial effects between different individuals. This paper uses datas of residents from 25 provinces and four municipalities, using social capital, which is the result arising from social skills, to analyze the effect of social skills to personal income. I emphasized social capital brought by social skills, proposed three indicators to measure personal social skills:social capital scale, social capital height and social capitalreliability, avoiding homogeneity and endogenous of social capital to a certain extent.In the empirical part, this paper analyzes the traditional OLS model, the results are not satisfactory. In order to prove the spatial effect between personal income, this paper calculates the Moran’s I, the results shows there do exists spatial effect. Then I compared the three models:the OLS model, the Spatial Autoregressive Model(SAR) and the Spatial Error Model(SEM).Results show that under the OLS model and the SAR model, the social capital scale is not significant. However, under the SEM model, all the three factors have significant positive effects on personal income. Through this research, we obtain the expected results as estimated, and prove that errors from other unit from the same area have an impact on this unit. In accordance from the main results above, we can put forward some related policy implications, such as to take full advantage of social skills, to improve employment policies and to improve transparency of labor market,etc.