The Role of Education in Determining Labor Market Outcomes in Urban China's Transitional Labor Markets
AbstractChinese urban workers are no longer shielded from market forces. They are bearing the brunt of the adjustment costs as enterprises shed redundant workers. This paper focuses on the role of education in determining labor market outcomes in China's rapidly changing urban labor environment. The empirical work, based on enterprise and worker survey data gathered in the fall of 1999 and spring of 2000, demonstrates that education is a key determinant of labor market outcomes. Educational attainment is an important and significant factor in the lay-off decision-the more education a worker has the better his/ her protection from lay off. Similarly, the more education a worker has the better his/her chances of finding new employment once laid off. The human capital accumulation of re-employed workers is rewarded more, as measured in terms of incremental earnings for each additional year of schooling, than that of continuously employed workers.
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Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 459.
Length: 28 pages
Date of creation: 10 Apr 2002
Date of revision:
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More information through EDIRC
China; human capital; Lay-offs; education; labor;
Find related papers by JEL classification:
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
- I20 - Health, Education, and Welfare - - Education - - - General
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-06-18 (All new papers)
- NEP-DEV-2002-06-18 (Development)
- NEP-FIN-2002-06-18 (Finance)
- NEP-LAB-2002-06-18 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Appleton, Simon & Knight, John & Song, Lina & Xia, Qingjie, 2002. "Labor retrenchment in China: Determinants and consequences," China Economic Review, Elsevier, vol. 13(2-3), pages 252-275.
- Giles, John & Wang, Dewen & Cai, Wei, 2011.
"The labor supply and retirement behavior of China's older workers and elderly in comparative perspective,"
Policy Research Working Paper Series
5853, The World Bank.
- Giles, John T. & Wang, Dewen & Cai, Wei, 2011. "The Labor Supply and Retirement Behavior of China's Older Workers and Elderly in Comparative Perspective," IZA Discussion Papers 6088, Institute for the Study of Labor (IZA).
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