The Effect Of Social Capital On The Migrants' Self-employment

The household contract responsibility system with remuneration linked to output greatly released the rural surplus labor force,and the change of social structure strengthen the farmers' extraterritorial mobility,a growing number of farmers leave rural areas to cities,then formed the special "migrant workers" phenomenon during the transitional period in China.The main forms of employment of migrant workers in cities are self-employment and employment.In recent years,with the development of social economy and the improvement of market dynamics,more and more migrant workers choose to engage in self-employment activities,and has formed a certain scale:the latest data released by the National Bureau of statistics show that the proportion of migrant workers engaged in self-employment has reached 16.7%of the total amount of migrant workers.To promote the implementation of the migrant workers' self-employment effectively,not only beneficial to the migrant workers' employment,realize their own value,and increase their household incomes,but also can promote the realization of the citizenization of the qualified migrant workers,therefore,the migrant workers' self-employment activities is a problem worthy of attention.However,the financial constraint is a primary problem of migrant workers engaged in self-employment activities must be faced:lack of start-up capital will hinder part of migrant workers to engage in self-employment.In such a human society in China,the economic behavior of any individual is related to its social capital.Social capital as an informal system,is a kind of special form of capital that affect economic behavior except material capital and human capital,social capital can promote lending to each other between relatives and friends,then give migrant workers' self-employment with non-formal financial support,thereby promote the implementation and development of migrant workers' self-employment.In the "nationwide entrepreneurship and innovation" social environment,deeply explore the influence of social capital on the migrant workers' self-employment,to promote the realization and development of their self-employment has very important significance.Existing researches mostly focus on analyze the impact of social capital on the migrant workers' self-employment,but the specific impact mechanism is not in-depth discussions,and the study on the impact of social capital on the migrant workers' self-employment income is seldom.In view of this,this paper constructs the theoretical framework of the impact of social capital on the implementation of the migrant workers' self-employment and its self-employment income,systematically reviews the specific influence mechanism,then put forward the corresponding research hypothesis.On this basis,this paper use the data from Rural-Urban Migration in China(RUMIC2009),using ?-Probit model to empirically analyze the impact of social capital on the implementation of the migrant workers' self-employment,then using the ?-Tobit model to in-depth study the informal financial support path of the social capital to promote migrant workers' self-employment,and then further analysis the influence of social capital on the migrant workers' self-employment income.Finally,we draw the following conclusions:firstly,social capital can effectively promote the realization of the migrant workers' self-employment;secondly,as an important carrier of informal finance,social capital can provide financial support for the implementation of the migrant workers' self-employment,which can further ease the credit constraints of the migrant workers in their self-employment activities,and the migrant workers with more abundant social capital,can obtain more informal finance,the informal finance loan amount is larger,its proportion is higher;finally,social capital has a positive impact on the subsequent development of the self-employed migrant workers' industry,there is a positive correlation between the migrant workers' self-employment operating income and their social capital,the greater the social capital stock,the more the migrant workers' self-employed business income increased.Therefore,in order to effectively promote the realization of the migrant workers' self-employment activities and its' long-term rapid development,this paper puts forward the following suggestions:firstly,the government should give migrant workers' self-employment activities in a certain policy guide and financial support;secondly,the financial institutions should optimize business layout,reform the way of working,and vigorously pushing forward the innovation of financial organizations,products and services;finally,the government and financial institutions to cooperate fully,to promote the development of inclusive finance,improve the financial service coverage and availability.