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Workplace Training and Human Capital: Livelihood Protection and Promotion in Urban China


by Zeyu Xu — 2005

Workplace training produces 2 types of human capital: general and firm-specific. Based on specific human capital theories pioneered by Gary Becker, this article empirically examines the impact of on-the-job training and off-the-job training on wage levels in urban China. It is found that off-the-job training in previous firms significantly raises wages at a worker's current firm, whereas previous on-the-job training has no effect on current wages. The results are consistent with theory and U.S. experience. The results are robust to various specifications and procedures correcting for potential error clustering and selection bias problems. It is suggested that advocating firm and government cosponsored general training programs targeting disadvantaged urban populations is a desirable and feasible strategy in an attempt to relieve the increasing unemployment pressure in China.


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Cite This Article as: Teachers College Record Volume 107 Number 6, 2005, p. 1370-1392
http://www.tcrecord.org ID Number: 11914, Date Accessed: 12/17/2017 8:28:57 PM

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About the Author
  • Zeyu Xu
    American Institutes for Research
    E-mail Author
    ZEYU XU is a research analyst at the American Institutes for Research in Washington, D.C. He is an education economist, with a focus on household economics and applied econometrics. His recent publications include “Linkage Between Teacher Quality, Student Achievement, and Cognitive Skills: A Rule-Space Model” (with Tao Xin and Kikumi Tatsuoka, Studies in Educational Evaluation, 2004).
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