Determinants of salary growth in Shenzhen, China: an analysis of formal education, on-the-job training, and adult education with a three-level model
Economics of Education Review Volume 21, Number 6, ISSN 0272-7757 Publisher: Elsevier Ltd
Using 1996 surveyed data of 1023 employees in Shenzhen, China, this study estimated the effects of three forms of human capital on employee salary, namely formal education, on-the-job training provided by employers, and adult education pursued by employees. Using a hierarchical linear model, the analysis estimated employee monthly salary growth over a maximum of six years due to (a) such temporal factors as work experience and improved performance, (b) individual-level characteristics, and (c) firm-level characteristics. This study found that (a) pre-work formal education was positively associated with salary only at hiring, (b) employees' experience in changing production technology as well as on-the-job training were positively associated with salary increases through improved technical proficiency, formal education was not; (c) manufacturing firms introduced more new production technology than the service sector and provided more on-the-job training, thus improving workers' performance and increasing their salary.
Xiao, J. (2002). Determinants of salary growth in Shenzhen, China: an analysis of formal education, on-the-job training, and adult education with a three-level model. Economics of Education Review, 21(6), 557-577. Elsevier Ltd.