Economic transition, higher education and worker productivity in China
By B. Fleisher, Yifan Hu, Haizheng Li, Seonghoon Kim. 2011
169 citations recorded by the source corpus.
We investigate the role of education on worker productivity and firms' total factor productivity using a panel of firm-level data from China. We estimate the returns to education by calculating the marginal productivity of workers of different education levels based on estimates of the firm-level production function. We also estimate how the education level of workers and CEO contributes to firms' total factor productivity. Estimated marginal products are much higher than wages, and the gap is larger for highly educated workers. Our estimate shows that an additional year of schooling raises marginal product by 30.1%, and that CEO's education increases TFP for foreign-invested firms. Estimates vary substantially across ownership classes, the effect of schooling on productivity being highest in foreign-invested firms. We infer that market mechanisms contribute to a more efficient use of human capital within firms.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/521ce285969cc60c27b54aed29d86065b34608cd
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In Economics and Econometrics
Citations in the corpus
- CEO gender, executive compensation and firm performance in Chinese‐listed enterprises (2013, background): “Hypothesis 4 in the present study derives from consideration of the relevant international literature (Chen et al., 2011; Fleisher et al., 2011; Jalbert et al., 2011) and the characteristics of the mainland Chinese market place.”
- Firm-level human capital and innovation: Evidence from China (2020, unknown): “We use the number of patent applications because it reflects more accurately the timing of a firm’s R&D behavior.(8) Skilled human capital, GM’s tenure and education, and”