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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 November 18, 2019 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

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