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Evaluating job training in two Chinese cities

In: China in the World Economy

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Abstract

Recent years have seen a surge in the evidence on the impacts of active labor market programs for numerous countries. However, little evidence has been presented on the effectiveness of such programs in China. Recent economic reforms, associated massive lay-offs, and accompanying public retraining programs make China fertile ground for rigorous impact evaluations. This study evaluates retraining programs for laid-off workers in the cities of Shenyang and Wuhan using a comparison group design. To our knowledge, this is the first evaluation of its kind in China. The evidence suggests that retraining helped workers find jobs in Wuhan, but had little effect in Shenyang. However, in terms of earnings impacts, retraining appears to have increased earnings in Shenyang but not in Wuhan. The study raises questions about the overall effectiveness of retraining expenditures, and it offers some directions for policymakers about future interventions to help laid-off workers.
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(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Benu Bidani & Niels-Hugo Blunch & Chor-Ching Goh & Christopher J. O'Leary & Zhongmin Wu, 2009. "Evaluating job training in two Chinese cities," Book chapters authored by Upjohn Institute researchers, in: China in the World Economy, pages 137-155, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:uchaps:cjoroutledge
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    1. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    2. Benu Bidani & Niels-Hugo Blunch & Chor-Ching Goh & Christopher O'Leary, 2009. "Evaluating job training in two Chinese cities," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 7(1), pages 77-94.
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    4. Dar, Amit & Gill, Indermit S, 1998. "Evaluating Retraining Programs in OECD Countries: Lessons Learned," The World Bank Research Observer, World Bank, vol. 13(1), pages 79-101, February.
    5. DiPrete, Thomas A. & Gangl, Markus, 2004. "Assessing bias in the estimation of causal effects: Rosenbaum bounds on matching estimators and instrumental variables estimation with imperfect instruments," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2004-101, WZB Berlin Social Science Center.
    6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, July.
    7. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
    8. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    9. Emmanuel Jimenez & Bernardo Kugler, 1987. "The Earnings Impact of Training Duration in a Developing Country: An Ordered Probit Selection Model of Colombia's Servicio Nacional de Aprendizaje (SENA)," Journal of Human Resources, University of Wisconsin Press, vol. 22(2), pages 228-247.
    10. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
    11. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    12. Fretwell, David H. & Benus, Jacob & O'Leary, Christopher J., 1999. "Evaluating the impact of active labor programs : results of cross country studies in Europe and Central Asia," Social Protection Discussion Papers and Notes 20131, The World Bank.
    13. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
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    Cited by:

    1. Zhaoxin Dai & Yunfeng Hu & Guanhua Zhao, 2017. "The Suitability of Different Nighttime Light Data for GDP Estimation at Different Spatial Scales and Regional Levels," Sustainability, MDPI, vol. 9(2), pages 1-15, February.
    2. Benu Bidani & Niels-Hugo Blunch & Chor-Ching Goh & Christopher J. O'Leary & Zhongmin Wu, 2009. "Evaluating job training in two Chinese cities," Book chapters authored by Upjohn Institute researchers, in: China in the World Economy, pages 137-155, W.E. Upjohn Institute for Employment Research.
    3. Janice Tripney & Mark Newman & Kimberly Hovish & Chris Brown, 2012. "PROTOCOL: Post‐basic Technical and Vocational Education and Training (TVET) Interventions to Improve Employability and Employment of TVET Graduates in Low‐ and Middle‐income Countries," Campbell Systematic Reviews, John Wiley & Sons, vol. 8(1), pages 1-53.
    4. Janice Tripney & Jorge Hombrados & Mark Newman & Kimberly Hovish & Chris Brown & Katarzyna Steinka‐Fry & Eric Wilkey, 2013. "Technical and Vocational Education and Training (TVET) Interventions to Improve the Employability and Employment of Young People in Low‐ and Middle‐Income Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 9(1), pages 1-171.
    5. Gordon Betcherman & Niels-Hugo Blunch, 2008. "The limited job prospects of displaced workers: evidence from two cities in China," Economic Change and Restructuring, Springer, vol. 41(3), pages 187-207, September.
    6. World Bank, 2009. "China - From Poor Areas to Poor People : China’s Evolving Poverty Reduction Agenda - An Assessment of Poverty and Inequality in China," World Bank Publications - Reports 3033, The World Bank Group.
    7. World Bank, 2009. "China - From Poor Areas to Poor People : China’s Evolving Poverty Reduction Agenda - An Assessment of Poverty and Inequality in China," World Bank Publications - Reports 3031, The World Bank Group.

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    More about this item

    Keywords

    UNEMPLOYMENT; job training; employment policy; China; Unemployment insurance; Benefits;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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