A study on social capital and job issues of graduates in a transitional economy of vietnam

Nội dung text: A study on social capital and job issues of graduates in a transitional economy of vietnam

1. A STUDY ON SOCIAL CAPITAL AND JOB ISSUES OF GRADUATES IN A TRANSITIONAL ECONOMY OF VIETNAM Assoc. Prof. Nguyen Ngoc Son sonnn@neu.edu.vn MA Nguyen Van Dai dainv@neu.edu.vn Faculty of Planning and Development, National Economics University, Hanoi, Vietnam Abstract In this study, we argue that although social capital plays a critical role for graduates as a job-seeking channel, its role is differently presented in various kinds of job in a transition context of Vietnam’s economy. This paper will analyze the ways in which social capital have impacts on the job of graduates through the whole process of job seeking. In doing so, we use a mixed methodology which includes (i) quantitative method with 549 observations; (ii) qualitative method with a sample of 13 respondents involved in 1-1.5-hour in-depth interviews. We conclude that the use of network in many different forms is still fruitful for job seekers. Key words: Graduate employment; social capital; family bonds 1. Introduction Lyda Judson Hanifan was the first author to use the concept of "social capital" to refer to friendship, mutual understanding in social life in 1916. In the book "Death and Life of Great American Cities” Jacobs said that social capital is not a property of land, personal property or cash, but real values in life that affect most people's daily lives like goodness, ideas, solidarity, empathy, social exchange in a group of people or families - the main social units of rural communities. After nearly half a century has passed, in 1960, the concept of social capital was mentioned by American writer and activist Jane Jacobs in his research from the perspective of "social capital is a complex system of human relationships built over time, with the function of supporting each other in the time it takes to ensure the safety of the streets and foster a sense of civic responsibility”. By the 1980s, the concept of social capital was introduced into Fukuyama's social science dictionary, but before that in the early 1970s, Bourdieu had used this concept in his studies. However, the concept of social capital only became an important scientific concept in Bourdieu's work of "Forms of Capital" in 1986. As he 916
2. wrote "Social capital is an attribute of individuals in the social context. Anyone can collect some social capital if the person tries and attends to it, and moreover anyone can use social capital to bring about economic benefits. But the ability to do that depends on social responsibilities, connections and social networks. Bourdieu also supports Hanifan's view that social capital is the entire resource (actual or potential) that comes from a network that has been known for a long time and has been partially institutionalized. When studying social capital, it is impossible not to mention American sociologist James Coleman. In 1988, he had an article that attracted a lot of attention on social capital. Accordingly, Coleman analyzed the importance of "social capital in the formation of human capital". In the first post, it shows that the views of Coleman and Bourdieu are completely opposite. Coleman defines social capital as "social structural resources that individuals can use as an asset." He affirmed that social capital is the "derivative product" of other activities, through interpersonal relations. People establish and maintain such relationships in search of benefits. In 1995, American politician Robert Putnam published a brief, novel and important discovery with which Putnam used the phrase "social capital" like Coleman and attached his social capital ideas to the issue of "civic ethics". Putnam cares about the close relationship between citizens. Putnam emphasizes social capital bringing mutual support, cooperation and trust. Not only did he provide views on social capital, he also proposed some indicators to measure social capital. By going further, Fukuyama asserted that human capital and social capital are mutually reinforcing. According to his perspective, "social capital is the standard, the value is shared to promote social cooperation. That is proved by real social relations", emphasized on the social norms. In 1999, the World Bank, an international organization, was very active in studying a definition of social capital including social institutions: "Social capital relates to institutions and associations." relations, standards that shape the quality and quantity of social interactions in society. There is much evidence that social cohesion is very important for societies that can become economically prosperous and develop sustainably. Social capital is not only a total of institutions that make up a society - it is also a glue that binds them together”. About empirical measurement of social capital In 1974, Granovetter introduced the work "Searching for a job: Researching relationships and careers". This is one of the first important works explaining how individuals seek jobs through social relationships. Following the birth and publication of the thesis in Granovetter, there have been more researches developed as Marsden's 917
3. research also explains that social capital is more useful for job seekers or employees. with jobs that require expertise and skills and especially jobs that require employers to invest in training. Further, Richard Rose (1998) uses a separate classification to determine the scope of orthodox and non-formal networks as well as their interactions. He draws conclusions through the marginal distribution of answers from many different questions. According to the World Bank in 1999, two authors, Anirudh Krishna and Elizabeth Shrader, developed questionnaires covering all aspects of social capital. The questionnaire is divided into 4 levels: individual / household level, neighbor / community level, regional level and national level. Also, in an economic aspect, with "Endogenous growth model" Paul F. Whitely measured social capital in the form of explanatory variables. He found that economic variables always precede the measure of social capital. This assumes that Putnam thinks that social capital changes very slowly. In one of his studies in 1999, Grootaert considered social capital as a productive element of households. He analyzed the relationship between social capital and prosperity - poverty of households in Indonesia. From there, find the cause of prosperity or poverty that is difficult to go from social capital to income. In 2004, the Australian Bureau of Statistics published the "Analytical Framework and Social Capital Measurement Indicators" document based on a number of evaluation criteria: trust, cooperation, social participation, mutual support, power relations, In Vietnam, the direction of empirical research marks major contributions from sociologists. First to mention is the good work of Stephen. J Appold and Nguyen (2004) in research projects to identify the role of social capital in the operation of small businesses, economic transactions in the family. The author indicated that social capital plays an important role in helping leaders of enterprises borrow capital to start a business. Notably, the case studies of the author are placed in the correlation between the two countries Vietnam and South Korea to draw the difference in social capital on different cultural backgrounds as a basis for shaping network of social relations. According to Le’s (2008) research "Social capital, human capital and social networks through a number of studies of Vietnam" referring to different notions of social capital. The article uses the integrated model of social capital, human capital and social networks. On that basis, the author mentioned more results of a number of specific studies in terms of: social network of people, enterprise information network, migration network. In the same direction of empirical research, Thomese and Nguyen (2007) used the concept of social capital to study the phenomenon of accumulating agricultural land in the grave of the Northern Central’s village through the study of "Relational relations with land consolidation and land use under the view of social 918
4. capital in a North Central’s village ". More recently, in 2010, researcher Nguyen Tuan Anh had more results to study the role of social capital in rural areas of North Central Vietnam. With this research, the author has clarified the role of social capital in kinship relations. In Banking Magazine, author Le Khac Tri assessed and assessed the existence of social capital and the role of this capital source in the situation of socio-economic development of Vietnam, especially in Banking industry through the article "Social capital to improve competitiveness and operational efficiency of the banking industry" in 2007. Knowing to write "About measuring social capital" by author Dinh Thi Thom (2009) also approaches measuring social capital through a number of case studies in the world. From that point out the points to note when using social capital measurement in the evaluation study. Nguyen Thi Anh Tuyet (2012) with the study "Social capital in management and rural development in our country today" has emphasized the application of promoting the role of social capital in the management and social development. with the aim of ensuring stability and sustainable development in all aspects of life in rural areas. Research on measurement indicators, in 2015, Nguyen Le Hoang Thuy To Quyen and colleagues measured the social capital of migrant workers to Ho Chi Minh City using the PLS-SEM model. 2. The relationship between social capital and student employment The market mechanism is gradually replacing the centralized and bureaucratic mechanism in the field of employment. Currently, the labor market is no longer "waiting for people" but every individual must actively find jobs to earn income to ensure life. It means that passive people will easily become unemployed and unemployed. In 1974, Granovetter announced the "Job search: Research on relationships and careers", which is one of the important works that first explains how individuals seek common jobs. through social relationships. He showed three main points in his research paper. First, the researcher thinks that many people find their jobs through social relations, not just through formal channels. Next, the social network allows job seekers to gather much better information about the availability of jobs as well as the specifics of the job. Finally, the author hypothesizes that weak links can yield more useful information than strong links. Do not stop at finding a job, social relations are also a bridge to help new graduates get a job suitable to their abilities, desires and bring better remuneration. After Granovetter's views were made, there were many development studies as well as critical arguments, thereby contributing to the identification and interpretation of the influences and relationships between social capital and jobs of 919
5. students in particular and the labor market in general. Nan Lin, professor of the American Department of Sociology, has many studies and articles related to social capital and social networks associated with job search. Lin's view is quite similar to Granovetter. However, Lin emphasized that direct and indirect social relations are social resources that play an important role in enhancing the status of the subject and that becomes an individual source of capital that can be used during job search. For example, through our friends, we can find a job that suits ourselves. Lin's views are evidenced by many studies of different scholars in the world such as Wegener (1991), Barbieri (1996), Hsung and Sun (1986), and in Vietnam, two authors Van Ngoc Lan and Tran Dan Tam (2005) also supported the argument. Through the analysis of the actual survey data, Franzen and Hangartner also point out that the work thanks to the support of friends, colleagues or relatives has a higher relevance to training expertise. Marsden also through his studies explains that social capital is more useful than graduates in particular and job seekers in general with skilled and skilled jobs. The study of the relationship between social capital and employment in Vietnam is also concerned by some Vietnamese scholars like Trinh Duy Luan in the analysis of human resources, labor and employment in Vietnam, the shortage of social capital in the process of finding births of births. This topic is also concerned by other authors such as Nguyen Quy Thanh, Nguyen Anh Tuan, Hoang Ba Thinh, mentioned in the research works when referring to the role of social capital affecting the opportunity to find suitable jobs. Researchers also point out that with the characteristics of Eastern culture, relationships with parents, relatives and relatives are one of the social sources that have important implications for life and opportunity. career of new graduates. In addition to blood relationships and media search ways, graduates can take advantage of the relationships from teachers, friends, and participants. organizations and clubs to find information and create opportunities to find jobs for themselves. Methodology In this study, the authors used mixed research methods including quantitative research and qualitative research. Quantitative research methods are used to find important factors affecting students' job search process. Qualitative research methods are used to further explore the underlying causes of the use of network relationships of graduates in the job search process. Specifically, this study uses multivariate regression (OLS) and probit functions. In addition, the authors used in-depth interviews for the cases selected from the survey questionnaire. The sample size of the quantitative analysis of 549 observations was collected using a convenient sampling method. In-depth interviews were conducted for 5 typical cases selected from the answer section through the questionnaire. Interview 920
6. time lasts from 1.0 to 1.5 hours and details of the survey participants are kept confidential. Further, 5-point Likert scale is used in the questionnaire. Results and Discussion Correlation between sources of job information and job type Private Foreign- Others Public Family Cramer’s V sector owned (start- sector enterprise (Sig.) (domestic) enterprises up ) Mass Used 10.2 31.6 25.7 20,4 12.1 0.233 (0.001) media Non-used 20.3 11.5 10.7 35.6 19.2 Social Used 15.0 25.5 13.6 15.7 30.2 0.211 (0.000) media Non-used 11.2 20.7 50.2 38.6 13.2 University Used 35.3 20.6 14.5 1.3 28.3 0.185 (0.045) lecturer Non-used 18.0 29.8 Family Used 37.2 20.1 10.5 30.1 12.1 0.399 (0.003) bonds Non-used 19.2 43.1 29.4 16.0 23.3 Job Used 1.4 32.7 30.3 2.6 33.0 0.267 (0.000) centers Non-used 18.2 15.0 29.1 18.2 30.9 Friends Used 19.6 36.4 20.3 3.5 20.2 0.301 (0.000) Non-used 40.7 23.4 30.1 8.5 2.6 ▪ Family background play an important role for those working in public sector Family relationships become a very important factor in finding jobs as well as the type of jobs of graduates, especially in the public sector. Among the sources of information and support for graduates, family background is the most important factor for respondents who are working in the public sector. “Although my parents work in the public sector in a middle-class position, they really want me to work in the public sector. The reason is that this area is more stable and I can take advantage of my parents' existing relationships. This is good for my future career development. On the other hand, the state sector is quite mysterious for many people because of the existence of unspoken laws. If a person does not understand this area in terms of how to access the source of information as well as the 'hard' requirements, it is easily removed from the recruitment process.”. (Hung – public official, aged 30, Hanoi) This result is similar to many other studies on the role of social capital (family bonds and family background) for the jobs of new graduates in Vietnam and China. 921
7. Family relationships will create employment opportunities by creating advantages in information, support or even the impact on the recruitment process in countries where reciprocity principles are still common (Wen 2006). Similar to the role of the family, the relationship with the school (particularly with the teachers at the university) also affects the type of work and the intention of finding graduates. In this study, we found that students who have a strong relationship with university teachers, especially those with good academic results tend to choose jobs at the institutions. The department of education and the public sector is higher than the other group. “Teachers, especially university teachers, are the ones who inspire me to choose a job as a teacher. In the past, I didn't think I was suitable for this job because I thought it was very tough and very difficult. When I said my intention to become a teacher, my teachers said that I had the ability to do that because my academic results and scientific research were good. Teachers also share opportunities and challenges with the role as a teacher and provide the information and conditions needed to meet the demand of this profession.” (Thanh - teacher, aged 28, Hanoi) ▪ Friendship-based network is critical to job seeking in private sector In contrast to the public sector, the process of finding employment in respondents in the private sector is heavily influenced by friendships. These relationships do not provide significant financial support but are a source of useful information about the hiring process and the nature of the job. Despite the explosion of information technology, the use of friendships in finding jobs and intentions of private sector workers. “Information technology helps to provide fairly complete information about the labor market but that information is common and accessible to everyone. My friends and I believe that the recruitment process as well as the nature of the work will not be fully displayed on the website of the business or on social networks. I asked the information of many friends, especially close friends to find out if the job was right for me. In addition, we were affected and in the group of friends when one of us found work that collected high expectations of the private sector.” (Hang – sales consultant, aged 31, Hanoi) ▪ Media provides a good source of information and connection for job seeking of graduates. A high proportion of the survey participants use media, especially social networks, in finding employment opportunities. In this study, social networking 922
8. became an important factor for the private sector and the ‘start-up’ group. Using technology elements to connect in the job network becomes important for start-up groups because of the strong development of social networking (Facebook, Zalo ) and websites. “The era of information technology has developed so strongly that the connection between people becomes easier and more convenient. Relationships through connections via Facebook or websites are also reliable and important. Of course the relationships that arise through social networks cannot replace other relationships but who take advantage of the power of information technology in building networks, that person will have an advantage because of many concerns more. Especially for startups and new business managers like me” (Phuc – entrepreneur, aged 35, Hanoi) Conclusion and Implication Different types of social capital have different roles for the professions. For public sector groups, family background becomes a very important factor because the family foundation creates advantages of available relationships and power to the public sector. Meanwhile, the relationship of friends, schools and social networks plays an important role in the private sector, the public sector and the start-up group respectively. Thus, in addition to the factors of professional knowledge, occupational skills, employment trends, relationships (social capital) also become an important factor affecting the type and intention of work. of workers. Some policy implications of this study include: ▪ Information transparency and process of the recruitment process become an important factor to limit the "advantage" of people with strong family background - which affects the fairness of the recruitment process ▪ Promote connectivity and limit risks in using social networks as a tool to build network. References 1. Bourdieu P. (1986), “The Forms of capital”, In: Richardson, J.G (Ed.), Handbook ofTheory and Research for the Sociology of Education. Greenwood Press, Westport,pp. 241-258. 2. Bui Quang, D. (2007). Xã hội học nông thôn (1st ed.). Hanoi: Khoa học xã hội. 923
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