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Earnings Expectation and Graduate Employment: Evidence from Recent Chinese College Graduates

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Chinese college graduates have faced increasing labor market competition since the expansion of tertiary education. Given rigid market demand, graduates with realistic earnings expectations may experience a more efficient job search. Using the 2008 MYCOS College Graduate Employment Survey, this study finds that a 1 000 yuan reduction in a graduate’s reservation wage can significantly increase the probability of finding a job by 66% and increase the likelihood of being employed six months after graduation by 92%. In addition, the gap between the reservation wage and the market wage has a positive impact. By slightly adjusting earnings expectations, college graduates can significantly improve job search efficiency. Market wages should be seen as reference points when adjusting income expectations.

10.1007/s11516-011-0145-z
/content/journals/10.1007/s11516-011-0145-z
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/content/journals/10.1007/s11516-011-0145-z
2011-01-01
2016-12-08

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