You are here:

Determinants of salary growth in Shenzhen, China: an analysis of formal education, on-the-job training, and adult education with a three-level model
ARTICLE

Economics of Education Review Volume 21, Number 6, ISSN 0272-7757 Publisher: Elsevier Ltd

Abstract

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.

Citation

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. Retrieved May 27, 2023 from .

This record was imported from Economics of Education Review on March 1, 2019. Economics of Education Review is a publication of Elsevier.

Full text is availabe on Science Direct: http://dx.doi.org/10.1016/S0272-7757(01)00049-8

Keywords

References

View References & Citations Map
  1. Becker, G.S. (1964). Human capital. New York: Columbia University Press.
  2. Belanger, P., & Tuijnman, A. (1997). The “silent explosion” of adult learning . New patterns of adult learning: A six-country comparative study, pp. 1-16. Oxford: Pergamon.
  3. Bryk, A.S., & Raudenbush, S.W. (1992). Hierarchical linear model: Applications and data analysis methods. Newburg Park, CA: Sage Publications.
  4. Chapman, P.G. (1993). The economics of training. New York: Harvester Wheatsheaf.
  5. China Central Committee and State Council [CC & SC] (1993). Guideline on China's education reform and development decisions on strengthening employee Training. Beijing.
  6. China State Education Commission [SEC] (1996). The ninth five-year plan of the national education and development plan for 2010. In: Policy report of State Education Commission No 6 (pp. 219-227). Beijing: China State Education Commission
  7. Cohn, E., & Addison, J. (1998). The economic returns to lifelong learning in OECD countries . Education Economics, 6(3), pp. 253-307.
  8. Gospel, H.F. (1991). Industrial training and technological innovation: A comparative and historical study. London and New York: Routledge.
  9. Greenhalgh, C., & Stewart, M. (1987). The effects and determinants of training . Oxford Bulletin of Economics and Statistics, 49(2), pp. 171-190.
  10. Hall, R.E., & Jones, C.I. (1999). Why do some countries produce much more output per worker than others? . The Quarterly Journal of Economics, 114(1), pp. 83-116.
  11. Heckman, J.J. (1979). Sample selection bias as a specification error . Econometrica, 47, pp. 153-162.
  12. Lalonde, R.J. (1986). Evaluating the econometric evaluations of training programs . The Amercian Economic Review, 76(4), pp. 604-620.
  13. Levin, H.M., & Kelley, C. (1994). Can education do it along? . Economics of Education Review, 13(2), pp. 97-108.
  14. Levin, H.M. (1987). Improving production through education and technology . The future impact of technology on work and education, pp. 194-214. London: The Falmer Press.
  15. Li, Q. S., (1995). Foreign investment on a large scale. In Shenzhen special economic zone yearbook 1995 (pp. 88–91). Shenzhen: Shenzhen Special Economic Zone Publishing House, Shenzhen.
  16. Liu, G.G. (1985). Research on development strategies of Shenzhen special economic zone. Hong Kong: Hong Kong Economic Guide Press and Shenzhen Research Centre for Economics.
  17. Liu, G.G. (1992). Strategies of Economic Development for Shenzhen Special Economic Zone in 1990s: Building up a prototype of socialist market economy and an internationally integrated city. Beijing: Economic Management Press.
  18. Lo, L.N.K., & Lee, C.H. (1996). In rural China: which road to relevant education? . Educational Leadership, 35(8), pp. 60-63.
  19. Middleton, J., Ziderman, A., & Adams, A.V. (1993). Skills for productivity: Vocational education and training in developing countries. New York: Oxford University Press.
  20. Min, W.F., & Tsang, M.C. (1990). Vocational education and productivity: A case study of the Beijing General Auto Industry Company . Economics of Education Review, 9(4), pp. 351-364.
  21. Mincer, J. (1974). Schooling, experience, and earnings. New York: Columbia University Press.
  22. Psacharopoulos, G. (1985). Returns to Education: A further international update and implications . Journal of Human Resources, 20, pp. 583-604.
  23. Psacharopoulos, G. (1994). Return to investment in education: A global update . World Development, 22(9), pp. 1325-1343.
  24. Psacharopoulos, G., & Woodhall, M. (1985). Education for development: Analysis of investment choices. New York: Oxford University Press.
  25. Rowan, B., Raudenbush, S., & Kang, J. (1991). Organizational design in high schools: A multilevel analysis . American Journal of Education, 99(fall), pp. 238-266.
  26. Schultz, T. (1975). The value of the ability to deal with disequilibira . Journal of Economic Literature, 13(3), pp. 827-846.
  27. Shenzhen Association for Enterprises [AE] (1996). Yearbook of Shenzhen registered firms. Shenzhen.
  28. Shenzhen Economic System Reform Commission [ESRC] (1989). Section Five: Labor, salary, and security system. Shenzhen special economic zone selected documents on reform, (pp. 333–363).
  29. Shenzhen Government (1989). Salary reform scheme for Shenzhen state-owned and non-profit Units (1984); Salary reform scheme for manufacturing firms and factories (1984); Decisions on firm salary reform (1985); Temporary ordinance for salary tax in Shenzhen Special Economic Zone (1985). In: Shenzhen Economic Reform Commission, Selected documents of Shenzhen special economic zone (pp. 341–366).
  30. Shenzhen Statistical and Information Yearbook Committee[SIYC] (1997). Statistical and Information Yearbook of Shenzhen. Beijing: China Statistics Press.
  31. Thurow, L. (1975). Generating inequality. New York: Basic Books, Inc.
  32. Tsang, M.C. (1987). The Impact of underutilization of education on productivity: A case study of the US Bell Companies . Economics of Education Review, 6(3), pp. 239-254.
  33. Tsang, M.C. (1997). The costs of vocational training . International Journal of Manpower, 18(1/2), pp. 63-89.
  34. Xiao, J. (1996). A study of the relationship between organizational factors and the transfer of training in the electronics industry in Shenzhen, China . Human Resource Development Quarterly, 7(1), pp. 55-73.
  35. Xiao, J. (1996b). Multi-ownership, management and productivity: A case of Shenzhen. Paper presented at the International Conference on Co-ordinated Development Among Regions, in China's Economic Reform and Social Development, Dec. 11–12, 1996, Hong Kong. Available in the conference proceedings (pp. 421–431).
  36. Xiao, J. (1998). Education expansion in Shenzhen, China: Its interface with economic development . International Journal of Educational Development, 18(1), pp. 3-19.
  37. Xiao, J. (1998). Higher adult education in China: Redefining its roles . Higher education in the post-Mao era, pp. 189-210. Hong Kong: Hong Kong University Press.
  38. Xiao, J. (1999). Alternative learning approaches in an Emerging Economy: An Experience of Shenzhen, China . Educational Practice and Theory, 21(1), pp. 27-49.
  39. Xiao, J., & Tsang, M.C. (1994). Costs and financing of adult education in Shenzhen, China . International Journal of Educational Development, 14(1), pp. 55-73.
  40. Xiao, J., & Tsang, M.C. (1999). Human capital development in an emerging economy: The experience of Shenzhen, China . China Quarterly, 157(March), pp. 72-114.
  41. Yang, J. (1997). The interaction between the socialist market economy and technical and vocational education and training in the People's Republic of China. Ph.D Dissertation, University of Manchester and Bolton Institute, U. K.
  42. Zang, Y. C. (1985). China's history of employee education [Zhongguo zhigong jioayu shigao]. Lianning People's Press.
  43. Ziderman, A., & Horn, R. (1995). Many paths to skilled employment: A reverse tracer study of seven occupations in Colombia . Education Economics, 3(1), pp. 61-79.

These references have been extracted automatically and may have some errors. Signed in users can suggest corrections to these mistakes.

Suggest Corrections to References