The Theoretical And Empirical Analysis On The Effect Of Social Capital To Employment

In recent years, the difficult problem of university students getting employed is becoming day by day prominent. According to the former research foundation, beginning with the theory and the real diagnosis two aspects, This article attempts from the social capital angle to discuss this national and entire social problem, in order to obtain the valuable research results.First, under the searching-matching theoretical framework, adding social capital factors, we get a model of personal searching for work. In the process of deducing the model, we explain how social capital effect on the transmission of job vacancies messages, and then on employment probability. The conclusion is that the probability of unemployed workers getting jobs increases with the quantity and quality of social capital, and it strictly concave increases with the number of social capital.Then, on the basis of personal job search model, we get an equilibrium model of labor market. It is thought that in the game between workers and employer, any one who use more social capital, he will have more outputs. If workers use social capital, wage level and unemployment rate will raise in the labor market. On the contrary, if employer uses it, the both will decrease.Finally, in the empirical part, using "employment of college graduates survey" data and the Heckman two-step method, we estimate the social capital factors which effect Graduate employment probability and initial wages. The results show that social capital has greater impact on employment probability than on initial wages ;meanwhile, as the most important factor affecting employment and wages is major, career guidance and other non-social-capital factors, the labor market is basically effective.