Social capital, or resources embedded in social networks, and its effect on attainment in the labor market has been extensively studied and documented in the literature (Lin 1999b). Initial evidence came from community studies (Lin, Ensel, and Vaughn 1981; Marsden and Hurlbert 1988). Attempts have been made to estimate this effect from national samples (e.g., De Graaf and Flap 1988; Angelusz and Tardos, forthcoming). This chapter makes a contribution to this growing literature with data from a national sample of urban residents in China. We examine the production of social capital, or what factors determine the variation of social capital among the sampled respondents; and the returns to social capital, or the effects of social capital on several attainment measures, including positions in the occupational hierarchy, supervisory responsibility, and wage. The chapter begins with a general introduction to social capital as a concept and theory, its measurements, and the processes of its production and returns that allow individuals to attain better jobs. Data from a recent survey conducted in a national sample of cities in China will be analyzed to illustrate these processes.