Research On The Influence Of Social Capital On The Wage Difference Of Farmer-migrants

As an important component of China's industrial workers,migrant workers play an important role in supporting China's sustained economic growth.But in reality,they have to face the pressure of household register wage differentials.Every scholar should pay attention to how to change the unequal employment market to make migrant workers face more equal environment to rely on their own ability to obtain wages.From the statistical data,we can know that farmer-migrants who work in city are using social capital to attain informations of labor market and opportunities of employment in labor market.According to the theory of social capital and the theory of wage difference,social capital can help to reduce the household registration wage differentials.This paper also verify that the effect of social capital on wage differentials through empirical analysis.The empirical data of this research is based on the CLDS database.This paper analysis the influence of social capital on migrant workers wage income difference of household discrimination.According to the RIF regression,Neumark decomposition and FFL decomposition method,this paper verified some results as follows.Firstly,income level and social capital have significant differences between the city workers and migrant workers,lack of social capital is an important cause of low wages.Secondly,mincer regression results show that social capital is an important factor affecting the level of wage income,but the effect of different dimensions of social capital are different.Thirdly,the rate of return of social capital between farmer-migrant workers and city workers is difference.Based on the analysis of the influence of social capital on household wage differences,results show that social capital has a significant positive effect on improving the overall wages of farmer-migrant workers and reduce the discrimination.But social capital does not reduce the wage gap between farmer-migrant and citizen.And the influence is different between different job characteristics and individual characteristics of farmer-migrant workers.And different dimensions of social capital's effect is different.According to the above empirical results,this research suggests that government needs to carry on the reform of the household registration system and improve the quality of human capital of rural population.Legislation of anti discrimination need to be strengthen.We also need to change the tradition to encourage woman to accumulate social capital.Public employment service platform and other services provided by government are also needed.