The impact mechanism of social networks on Chinese rural-urban migrant workers' behaviour and wages
The Economic and Labour Relations Review
Published online on May 21, 2014
Abstract
Chinese domestic rural–urban migrant workers have played a substantial role in economic development since the late 1970s. This article makes an attempt to establish a two-period hiring model interpreting the impact mechanism of social networks on migrant workers’ wages. The findings indicate that the extension of social networks of both firms and workers facilitates a decrease in the information gap between them and improves extra common benefits to both.