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proportion of students favoring state-sector Student job preferences by sector
employment has consistently remained above 60%
throughout the sampled years. cadre, for example, had a higher chance of receiving
a state sector job offer (66% compared to 50% of
Higher wages and benefits. As for those without a cadre parent). Moreover, students
with a college-educated parent, coming from high-
why college students in China prefer state sector income families, or with social connections to
employment, this survey makes clear that entry- the state sector were also more likely to receive
level positions in the state sector offer higher pay state job offers. In addition, female students faced
than their average counterparts in the private greater challenges in securing state sector jobs
sector. In 2015, the average monthly wage in the compared with male students (57% of men versus
state sector was over 12% higher than that in the only 45% of women).
private sector. State sector jobs also provided
a wider offering of benefits relative to private Implications for China’s economy.
sector jobs, including local urban residential
status, pensions, various types of insurance, and Strong preference among college-educated
housing benefits. In addition, state jobs are often job candidates for state sector jobs suggests
associated with greater job security and higher challenges for private firms in attracting top talent.
levels of prestige. This brain drain to the state sector may limit the
pool of highly skilled human capital available to
Intense competition for state private firms, potentially hindering their growth
sector jobs. The steady supply of college and competitiveness. On the other hand, China’s
government and SOEs may benefit from the
students that aspire to state sector jobs coupled ability to attract and retain highly educated
with significant declines in public employment workers, contributing to their improved economic
opportunities have intensified competition for such management and technical efficiency. However, this
jobs. Among all sampled college students who concentration of human capital in the state sector
explicitly desired employment in the state sector, raises concerns about the overall efficiency and
only 51% received state job offers. innovative potential of China’s economy, because
Who gets state sector jobs? According to the the private sector is most likely to be the source of
analysis, significant variation existed as to who innovation, like any other country.
receives employment offers from the state sector
based on individual characteristics. Male students,
urban residential status holders, CCP members,
strong standardized test-takers, elite university
students, and students with higher household
income or more elite parental backgrounds were
more likely to receive job offers in the state sector.
Students with at least one parent who was a CCP
Share of employment in the state sector
SOUTH CHINA BUSINESS JOURNAL 26
employment has consistently remained above 60%
throughout the sampled years. cadre, for example, had a higher chance of receiving
a state sector job offer (66% compared to 50% of
Higher wages and benefits. As for those without a cadre parent). Moreover, students
with a college-educated parent, coming from high-
why college students in China prefer state sector income families, or with social connections to
employment, this survey makes clear that entry- the state sector were also more likely to receive
level positions in the state sector offer higher pay state job offers. In addition, female students faced
than their average counterparts in the private greater challenges in securing state sector jobs
sector. In 2015, the average monthly wage in the compared with male students (57% of men versus
state sector was over 12% higher than that in the only 45% of women).
private sector. State sector jobs also provided
a wider offering of benefits relative to private Implications for China’s economy.
sector jobs, including local urban residential
status, pensions, various types of insurance, and Strong preference among college-educated
housing benefits. In addition, state jobs are often job candidates for state sector jobs suggests
associated with greater job security and higher challenges for private firms in attracting top talent.
levels of prestige. This brain drain to the state sector may limit the
pool of highly skilled human capital available to
Intense competition for state private firms, potentially hindering their growth
sector jobs. The steady supply of college and competitiveness. On the other hand, China’s
government and SOEs may benefit from the
students that aspire to state sector jobs coupled ability to attract and retain highly educated
with significant declines in public employment workers, contributing to their improved economic
opportunities have intensified competition for such management and technical efficiency. However, this
jobs. Among all sampled college students who concentration of human capital in the state sector
explicitly desired employment in the state sector, raises concerns about the overall efficiency and
only 51% received state job offers. innovative potential of China’s economy, because
Who gets state sector jobs? According to the the private sector is most likely to be the source of
analysis, significant variation existed as to who innovation, like any other country.
receives employment offers from the state sector
based on individual characteristics. Male students,
urban residential status holders, CCP members,
strong standardized test-takers, elite university
students, and students with higher household
income or more elite parental backgrounds were
more likely to receive job offers in the state sector.
Students with at least one parent who was a CCP
Share of employment in the state sector
SOUTH CHINA BUSINESS JOURNAL 26
