Evaluating Job Training in Two Chinese Cities

Recent years have seen a surge in work 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 with massive lay-offs, and the accompanying public retraining programs make China fertile ground for rigorous impact evaluations. This study uses survey data from the two large industrial cities Shenyang and Wuhan, covering the period 1998 to 2000, to evaluate retraining programs for over 2,000 workers two years after they had been observed as displaced and unemployed. Using a comparison group design, this study is, to our knowledge, 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. The study raises questions about the overall effectiveness of retraining expenditures, and it offers some directions for policy-makers about future interventions to help laid-off workers.

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Bibliographic Details
Main Authors: Bidani, Benu, Blunch, Niels-Hugo, Goh, Chor-Ching, O'Leary, Christopher
Format: Journal Article biblioteca
Language:EN
Published: 2009
Subjects:Human Capital, Skills, Occupational Choice, Labor Productivity J240, Labor Turnover, Vacancies, Layoffs J630, Economic Development: Human Resources, Human Development, Income Distribution, Migration O150, Economic Development: Regional, Urban, and Rural Analyses, Transportation O180, Socialist Systems and Transitional Economies: Factor and Product Markets, Industry Studies, Population P230, Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics P250, Urban, Rural, and Regional Economics: Regional Migration, Regional Labor Markets, Population, Neighborhood Characteristics R230,
Online Access:http://hdl.handle.net/10986/5421
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Summary:Recent years have seen a surge in work 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 with massive lay-offs, and the accompanying public retraining programs make China fertile ground for rigorous impact evaluations. This study uses survey data from the two large industrial cities Shenyang and Wuhan, covering the period 1998 to 2000, to evaluate retraining programs for over 2,000 workers two years after they had been observed as displaced and unemployed. Using a comparison group design, this study is, to our knowledge, 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. The study raises questions about the overall effectiveness of retraining expenditures, and it offers some directions for policy-makers about future interventions to help laid-off workers.