Our paper aims at examining the impacts of social networks,the most important category of social capital,on income and income inequality of rural households. Moreover,we intend to understand how these impacts vary acr...
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Our paper aims at examining the impacts of social networks,the most important category of social capital,on income and income inequality of rural households. Moreover,we intend to understand how these impacts vary across regions with different levels of marketization and economic development. Employing household survey data from rural China,our empirical results demonstrate that social networks contribute 12.1%—13.4% to the income inequality among households in rural China,ranking the fourth after village fixed effects,non-farm employment and education. In eastern China where marketization and the level of development are higher than in middle and western China,social networks have a larger impact on income and greater contribution to income inequality.
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