In nationally representative household data from the 2008 Chinese Rural to Urban Migration Survey, nearly two thirds of rural–urban migrants found their employment through family members, relatives, friends or acquaintances. This paper investigates why the use of social network to find jobs is so prevalent among rural–urban migrants in China, and whether migrants face a wage penalty as a result of adopting this job search method. Using a switch regression approach, we find evidence of positive selection effects of the use of networks on wages. Users of networks tend to be older, to have migrated longer ago and to be less educated. In addition, married workers and those from villages with more out-migrant are more likely to use networks, while those without local residential registration status are less likely. Controlling for selectivity, we find a large negative impact of network use on wages. Using job contacts brings access to urban employment, but at the cost of markedly lower wages.

This paper examines whether childcare choice affects the early childhood development of children aged 7–59 months. Using the data from Chinese Family Panel Studies, we look at household choices between parental and grandparental cares and the timing of four key early life achievements – walking, talking, counting and toilet training. We conceptualize early childhood development within a household production model, which enables us to identify the impacts of childcare. Our results suggest that compared with parental care, grandparental care delays the achievement of all four outcome measures. Grandparental care is particularly disadvantageous for children who are ‘left‐behind’ by migrant parents.

This chapter examines how peasant households in China allocate their labour among migration, rural industry, and farming. It is shown that the average and marginal returns to rural labour differ greatly among activities, with returns in non-farm activities exceeding those of farming. Incentives to seek non-farm employment are powerful. These will increase if the inequalities between rural and urban China, or within rural China continue to grow.