IDEAS home Printed from https://ideas.repec.org/a/taf/edecon/v14y2006i2p155-180.html
   My bibliography  Save this article

The Accumulation of Human Capital Over Time and its Impact on Salary Growth in China

Author

Listed:
  • Zeyun Liu
  • Jin Xiao

Abstract

This study compares the growth in salaries across three spatial regions in China during the period 1993-1998, when economic reforms were implemented nationwide. Our study compares the impact of three forms of education and training on salary growth, namely pre-job formal schooling, on-the-job-training provided by employers, and adult education paid for by the employees themselves. We used a three-level hierarchical linear model to partition variance among individual, firm, and regional characteristics. The data were drawn from a 1998 survey of 16 485 employees from 365 firms in six provinces (two provinces in the eastern part of the country, two in the central part, and two in the western part). We found that: (1) regional disparities have a paramount impact on differences in salary; (2) individual characteristics defined by firm as well as firm characteristics are significantly related to salary decisions; (3) returns to formal schooling increase significantly in more market-based regions; and (4) employees also benefit by receiving on-the-job-training and by participating in adult education programs outside their firm.

Suggested Citation

  • Zeyun Liu & Jin Xiao, 2006. "The Accumulation of Human Capital Over Time and its Impact on Salary Growth in China," Education Economics, Taylor & Francis Journals, vol. 14(2), pages 155-180.
    • Handle: RePEc:taf:edecon:v:14:y:2006:i:2:p:155-180
    DOI: 10.1080/09645290600622913
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/10.1080/09645290600622913
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09645290600622913?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Elchanan Cohn & John Addison, 1998. "The Economic Returns to Lifelong Learning in OECD Countries," Education Economics, Taylor & Francis Journals, vol. 6(3), pages 253-307.
    2. Li, Haizheng, 2003. "Economic transition and returns to education in China," Economics of Education Review, Elsevier, vol. 22(3), pages 317-328, June.
    3. Psacharopoulos, George, 1979. "On the weak versus the strong version of the screening hypothesis," Economics Letters, Elsevier, vol. 4(2), pages 181-185.
    4. Levin, Henry M. & Kelley, Carolyn, 1994. "Can education do it alone?," Economics of Education Review, Elsevier, vol. 13(2), pages 97-108, June.
    5. Naderi, A. & Mace, J., 2003. "Education and earnings: a multilevel analysis: A case study of the manufacturing sector in Iran," Economics of Education Review, Elsevier, vol. 22(2), pages 143-156, April.
    6. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    7. Meng, Xin, 1998. "Male-female wage determination and gender wage discrimination in China's rural industrial sector," Labour Economics, Elsevier, vol. 5(1), pages 67-89, March.
    8. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 岩﨑, 一郎 & Iwasaki, Ichiro & 馬, 欣欣 & Ma, Xin Xin, 2019. "現代中国における男女賃金格差: メタ分析による接近," Discussion Paper Series 689, Institute of Economic Research, Hitotsubashi University.
    2. Ichiro Iwasaki & Xinxin Ma, 2020. "Gender wage gap in China: a large meta-analysis," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-19, December.
    3. Iwasaki, Ichiro & Ma, Xinxin, 2020. "Gender Wage Gap in China: A Large Meta-Analysis," CEI Research Paper Series 2020-5, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fleisher, Belton M. & Sabirianova, Klara & Wang, Xiaojun, 2005. "Returns to skills and the speed of reforms: Evidence from Central and Eastern Europe, China, and Russia," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 351-370, June.
    2. Jhon James Mora, 2003. "Sheepskin effects and screening in Colombia," Colombian Economic Journal, Universidad Nacional de Colombia, FCE, CID, April.
      • Jhon James Mora, 2003. "Sheepskin effects and screening in Colombia," Colombian Economic Journal, Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Andes, Universidad del Valle, Universidad Externado de Colombia, Universidad Nacional de Colombia, vol. 1(1), pages 95-108, December.
    3. Luisa Rosti & Chikara Yamaguchi & Carolina Castagnetti, 2005. "Educational Performance as Signalling Device: Evidence from Italy," Economics Bulletin, AccessEcon, vol. 9(4), pages 1-7.
    4. Yamauchi, Futoshi, 2003. "Are experience and schooling complementary?," FCND briefs 166, International Food Policy Research Institute (IFPRI).
    5. Miguel Baião Santos, 2010. "Inserção no Mercado de Trabalho e Formação Profissional - Guia Teórico para Decisores," Working Papers wp052010, Socius, Socio-Economics Research Centre at the School of Economics and Management (ISEG) of the Technical University of Lisbon.
    6. Yi CHEN & Sylvie DEMURGER & Martin FOURNIER, 2004. "Différentiels salariaux, segmentation et discrimination à l’égard des femmes sur le marché du travail chinois," Working Papers 200426, CERDI.
    7. Miller, Paul W. & Mulvey, Charles & Martin, Nick, 2004. "A test of the sorting model of education in Australia," Economics of Education Review, Elsevier, vol. 23(5), pages 473-482, October.
    8. Tan, Clifford, 2013. "The contribution of university rankings to country's GDP per capita," MPRA Paper 53900, University Library of Munich, Germany.
    9. Amy Y.C. Liu, 2005. "Changing wage structure and education in Vietnam 1993-1998: The roles of demand," International and Development Economics Working Papers idec05-4, International and Development Economics.
    10. Humburg, M. & van der Velden, R.K.W., 2014. "Skills and the graduate recruitment process: Evidence from two discrete choice experiments," ROA Research Memorandum 002, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    11. Wang, Le, 2012. "Economic transition and college premium in urban China," China Economic Review, Elsevier, vol. 23(2), pages 238-252.
    12. Liu, Zhiqiang, 2007. "The external returns to education: Evidence from Chinese cities," Journal of Urban Economics, Elsevier, vol. 61(3), pages 542-564, May.
    13. Păcurariu Gabriela, 2019. "The Integration of Higher Education Graduates on the Labor Market," European Review of Applied Sociology, Sciendo, vol. 12(19), pages 23-32, December.
    14. Humburg, Martin & van der Velden, Rolf, 2015. "Skills and the graduate recruitment process: Evidence from two discrete choice experiments," Economics of Education Review, Elsevier, vol. 49(C), pages 24-41.
    15. Yi Chen & Sylvie Démurger & Martin Fournier, 2006. "The Evolution of Gender Eamings Gaps and Discrimination in Urban China : 1988-1995," Post-Print hal-00081928, HAL.
    16. Manuel Salas Velasco, 2004. "Rendimientos privados de las inversiones en educación superior a partir de ecuaciones de ingresos," Hacienda Pública Española / Review of Public Economics, IEF, vol. 169(2), pages 87-117, June.
    17. Fernando Galindo-Rueda, 2003. "Employer Learning and Schooling-Related Statistical Discrimination in Britain," CEE Discussion Papers 0031, Centre for the Economics of Education, LSE.
    18. Cho, Yoonyoung & Newhouse, David, 2013. "How Did the Great Recession Affect Different Types of Workers? Evidence from 17 Middle-Income Countries," World Development, Elsevier, vol. 41(C), pages 31-50.
    19. Abbi Kedir & Andri Kyrizi & Francisco Martinez-Mora, 2012. "Signalling and Productivity Effects of Overeducation: Is It Really a Waste of Resources?," Discussion Papers in Economics 12/19, Division of Economics, School of Business, University of Leicester.
    20. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:edecon:v:14:y:2006:i:2:p:155-180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CEDE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.