Abstract
There is evidence for the importance of strong ties in job referral among Chinese working people. The principle of reciprocity in exchange theory has been used as an explanation for this. According to the theory, a job seeker who has more resources is more appealing to a matchmaker, who is then more likely to refer the job seeker to a more rewarding job. A strong tie acts to enhance the expectation of reciprocity from the referred person. This study of Chinese working people in Shanghai seeks to identify the effect of strong ties on job referral. The results point to the advantages of having strong ties in job referral, which include not just earnings but also satisfaction from the referred job. Importantly, people with more resources benefit more from job referral through a matchmaker, particularly when the tie with the matchmaker is strong.
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