THESIS
2014
viii, 40 pages : illustrations ; 30 cm
Abstract
This study investigates the rates of return from job training in China and examines the
heterogeneity of these returns. Through focusing on the context of transitional China, this
study adds new evidence to the literature on the acquisition of and returns from job training.
The results are based on the analysis of an urban sample from the Chinese General Social
Survey (2006), and these results lead to two main conclusions.
First, there are positive returns from job training in transitional China, and the gender
difference in the returns from such training is not significant. However, the regressions within
separate male and female samples show that job training endows female workers with a
bigger earnings advantage (of 51.3%) compared to females without job training, whereas
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This study investigates the rates of return from job training in China and examines the
heterogeneity of these returns. Through focusing on the context of transitional China, this
study adds new evidence to the literature on the acquisition of and returns from job training.
The results are based on the analysis of an urban sample from the Chinese General Social
Survey (2006), and these results lead to two main conclusions.
First, there are positive returns from job training in transitional China, and the gender
difference in the returns from such training is not significant. However, the regressions within
separate male and female samples show that job training endows female workers with a
bigger earnings advantage (of 51.3%) compared to females without job training, whereas
male workers who receive job training gain a smaller earnings advantage (of 43.6%)
compared to other male workers. The consistency of results from both the ordinary least
squares (OLS) regression and propensity score matching (PSM) confirms the causal effect of
job training.
Second, by analyzing the heterogeneity of job training returns, this study reveals that a
negative selection hypothesis applies to female workers but not to male workers. That is, the
higher the possibility that female workers can receive job training, the lower the earnings
advantage they gain from such training.
Although this study is limited to data from the General Social Survey, it provides a
narrative explanation for the observed patterns. The findings suggest that given the different
requirements of job training across industry types, the heterogeneity of returns from training
can be partly attributed to occupational segregation by gender. Moreover, the results from the
model for predicting the likelihood of receiving job training provide new evidence for the
social product theory of human capital. These results confirm that the reception of job training
is largely determined by the social characteristics of individuals.
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