Clan, reciprocal exchange and occupational choice

This is the authors' abstract. We don't add key points for this paper.

Traditional Chinese society is relation-oriented and individuals are embedded in various guanxi networks. Clan networks, rooted in kinship and geographic proximity, are characterized by strong ties. Under reciprocal exchange within networks, clan members are more likely to choose jobs that benefit other members, thereby accumulating favours for themselves. Based on the support that jobs provide to other members, we categorize industries into strong-ties, weak-ties, and general industries, and examine the effect of clan networks on members’ occupational choices. This study finds that the clan significantly increases the likelihood of individuals choosing strong-ties industries, while this effect diminishes once individuals leave their hometowns. This suggests that clan members’ preferences for strong-ties industries are driven by reciprocal exchanges rather than cultural concepts. Microdata further demonstrates the spillover effect of strong-ties jobs on other members.