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The impact of vocational schooling on human capital development in developing countries : evidence from China

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  • Loyalka,Prashant Kumar
  • Huang,Xiaoting
  • Zhang,Linxiu
  • Wei,Jianguo
  • Yi,Hongmei
  • Song,Yingquan
  • Shi,Yaojiang
  • Chu,James

Abstract

A number of developing countries are currently promoting vocational education and training (VET) as a way to build human capital and strengthen economic growth. The primary aim of this study is to understand whether VET at the high school level contributes to human capital development in one of those countries?China. To fulfill this aim, a longitudinal data on more than 10,000 students in vocational high school (in the most popular major, computing) and academic high school from two provinces of China are used. First, estimates from instrumental variables and matching analyses show that attending vocational high school (relative to academic high school) substantially reduces math skills and does not improve computing skills. Second, heterogeneous effect estimates also show that attending vocational high school increases dropout, especially among disadvantaged (low-income or low-ability) students. Third, vertically scaled (equated) baseline and follow-up test scores are used to measure gains in math and computing skills among the students. The results show that students who attend vocational high school experience absolute reductions in math skills. Taken together, the findings suggest that the rapid expansion of vocational schooling as a substitute for academic schooling can have detrimental consequences for building human capital in developing countries such as China.

Suggested Citation

  • Loyalka,Prashant Kumar & Huang,Xiaoting & Zhang,Linxiu & Wei,Jianguo & Yi,Hongmei & Song,Yingquan & Shi,Yaojiang & Chu,James, 2015. "The impact of vocational schooling on human capital development in developing countries : evidence from China," Policy Research Working Paper Series 7396, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7396
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    References listed on IDEAS

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    Cited by:

    1. Guirong Li & Jiajia Xu & Liying Li & Zhaolei Shi & Hongmei Yi & James Chu & Elena Kardanova & Yanyan Li & Prashant Loyalka & Scott Rozelle, 2020. "The Impacts of Highly Resourced Vocational Schools on Student Outcomes in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(6), pages 125-150, November.
    2. Marjorie Chinen & Thomas de Hoop & Lorena Alcázar & María Balarin & Josh Sennett, 2017. "Vocational and business training to improve women's labour market outcomes in low‐ and middle‐income countries: a systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 13(1), pages 1-195.
    3. Chen, Jie & Pastore, Francesco, 2021. "Does Vocational Education Pay Better, or Worse, Than Academic Education?," IZA Discussion Papers 14445, Institute of Labor Economics (IZA).
    4. Bai, Yunli & Zhang, Linxiu & Yi, Hongmei & Zheng, Liming & Rozelle, Scott, 2017. "The Impact of an Academic High School Tuition Relief Program on Students’ Matriculation into High Schools in Rural China," China Economic Review, Elsevier, vol. 43(C), pages 16-28.
    5. Huzeyfe Torun & Semih Tumen, 2019. "Do vocational high school graduates have better employment outcomes than general high school graduates?," International Journal of Manpower, Emerald Group Publishing, vol. 40(8), pages 1364-1388, November.
    6. Chen, Jie & Pastore, Francesco, 2022. "Dynamics of returns to vocational education in China: 2010-2017," GLO Discussion Paper Series 858 [rev.], Global Labor Organization (GLO).
    7. Julia Kuzmina & Martin Carnoy, 2015. "The Effectiveness Of Vocational Versus General Secondary Education: Evidence From Pisa 2012 For Countries With Early Trackin," HSE Working papers WP BRP 23/EDU/2015, National Research University Higher School of Economics.
    8. Thomas F. Remington, 2017. "Closing the Skills-Jobs Gap: Russia and China Compared," HSE Working papers WP BRP 53/PS/2017, National Research University Higher School of Economics.
    9. Lei Wang & Mengjie Li & Cody Abbey & Scott Rozelle, 2018. "Human Capital and the Middle Income Trap: How Many of China's Youth are Going to High School?," The Developing Economies, Institute of Developing Economies, vol. 56(2), pages 82-103, June.
    10. Yue Xiufeng, 2021. "The influence of Employees’ engagement on Career success: A Case study of Buddhist Temple in Guangdong Province, China," International Journal of Science and Business, IJSAB International, vol. 5(7), pages 33-53.

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    More about this item

    Keywords

    Education For All; Secondary Education; Tertiary Education; Effective Schools and Teachers; Primary Education;
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