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Institutional Variations and the Perceived Importance of Networks for Status Attainment in US and China
Using data from the World Values Survey (2005-2006), I show that perceived levels of the importance of networks for status attainment are higher in the US than in China. This suggests that networking, in the form of a ‘guanxi’ culture, may be overstated in China. I underscore the importance of institutional factors, drawing attention to important differences by job sector within each country. In the US, networks are perceived to be more important in the public sector than in the private sector. In China, networks are perceived to be equally important in both public and private sectors. I explain these differences invoking such concepts as liberal market economies and patronage jobs in the US and, institutional holes and political technocracy in China. The results illustrate that institutional factors are an important predictor of the perceived usefulness of social capital for status attainment.