A Literature Review On The Research Of Social Network’s Job Search Effect

The large labor supply makes the employment market in China have unusually fierce competition. The trend of aging population increase makes job positions scarcely. The gap between regional economy and education development, the recruitment information asymmetry between the company and job seeker led to structure imbalance problems between labor supply and demand. All those aggravate the employment situation. Therefore, the employment problem has always been the focus of our government and academia. At the same time, in the job market, the information resources provided by social network can solve the problem of recruitment information asymmetry between the two sides and help ta achieve the match between job position and job seeker, the human resources provided by social network can be beneficial to job seekers preferential access to scarce resources. Under the background of economic transition in China, the government with the political power and monopoly control of scarce resources, directly or indirectly, intervenes the market. The labor market has not established mature system of intermediary regulation mechanism and channels. The fair and healthy competition consciousness of the subject of the job market is weak. Those phenomena leave space for social network. Especially, under the situation of Chinese traditional culture, collectivism concept is entrenched, individuals desire and rely on integrating into the social network in the subconscious, the typical cultural features boost the development of social network’s job effect. The study introduces the concept of social network, social network theory, the development of social network research in China, and the relationship of social network and the Chinese local "Guanxi".As a kind of informal institution, social network mechanism widen the perspective of explaining individual wage gap, and with an irreplaceable role to make up for the inefficiency of government regulation and the defects of market allocation in the job market. Research on the mechanism of social networks on job search process can provide the reference for scholars to study the effect of informal institution in the job market in a more comprehensive perspective. As a kind of capital, social network can play a positive role on transferring information and matching job seekers with job positions. As a member of the capital family, just like human capital and physical capital, social capital can also promote regional economic development in the macro level, and improve individual income in the microscopic level.This study’s innovation points:(1)The study shows the social network’s job search effect comprehensively, which can provide the reference for scholars continue to adopt more diverse sample data, in a more rigorous research methods, make deeper and more persuasive explanations;(2)The study makes a clear definition of the relationship between social network and the concept of China "Guanxi", which can help to avoid the confusion about the similar concepts, which can provide reference for scholars on theory and empirical researches.