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Evaluating Job Training in Two Chinese Cities

Author

Listed:
  • Benu Bidani

    () (World Bank)

  • Niels-Hugo Blunch

    () (The George Washington University)

  • Chor-ching Goh

    () (World Bank)

  • Christopher J. O'Leary

    () (W.E. Upjohn Institute)

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.

Suggested Citation

  • Benu Bidani & Niels-Hugo Blunch & Chor-ching Goh & Christopher J. O'Leary, 2005. "Evaluating Job Training in Two Chinese Cities," Upjohn Working Papers and Journal Articles 05-111, W.E. Upjohn Institute for Employment Research.
  • Handle: RePEc:upj:weupjo:05-111
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    References listed on IDEAS

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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," Review of Economic Studies, Oxford University Press, 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.
    3. Emanuela Galasso & Martin Ravallion & Agustin Salvia, 2004. "Assisting the Transition from Workfare to Work: A Randomized Experiment," ILR Review, Cornell University, ILR School, vol. 58(1), pages 128-142, October.
    4. Dar, Amit & Gill, Indermit S, 1998. "Evaluating Retraining Programs in OECD Countries: Lessons Learned," World Bank Research Observer, World Bank Group, 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, Social Science Research Center Berlin (WZB).
    6. 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.
    7. 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.
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    9. 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 and Labor Policy and Technical Notes 20131, The World Bank.
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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, Open Access Journal, 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. 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.
    4. 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 Other Operational Studies 3033, The World Bank.
    5. 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 Other Operational Studies 3031, The World Bank.

    More about this item

    Keywords

    Active labor market programs; job training; impact evaluation; propensity score matching; China;

    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

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