Migrant Workers in Beijing: How Hometown Ties Affect Economic Outcomes

Migrant networks have long been regarded as helpful for facilitating migration and assimilation. However, research examining the influence of migrant networks on labour market outcomes for migrants has provided mixed results. This article investigates the impact of hometown ties on migrants’ labour market outcomes in the context of Chinese internal migration, by utilizing data from migrants in Beijing to perform statistical analyses of income and informal employment (i.e. employment without legal documents). After adjusting for the potential bias that results from the workers’ self-selectivity into the use of hometown ties in finding jobs, the analyses show that the hourly income of migrants is lower if they depend on hometown ties to find jobs. Also, migrants who rely on hometown ties for jobs are more likely to be informally employed, which has a detrimental effect on their overall welfare.