Vocational training not only solves the needs of migrant workers for their own employment, but also is an important way to stabilize employment growth and complete the task of precision poverty alleviation. Based on the survey data of 4138 migrant workers from 13 provinces in central and western China, this paper uses the propensity score matching(PSM)model to empirically test the effect of vocational training on the wage income of migrant workers. The empirical analysis shows that: (1)Participation in vocational training has a significant positive impact on the wage income of migrant workers, whose hourly wages have increased by 1.88 yuan due to vocational training, so “Teaching People to Fish” has an obvious positive effect.(2)The “salary premium” obtained by migrant workers through vocational training has a heterogeneous nature. Participation in introductory training increases the hourly wage of migrant workers by 4.07 yuan, participation in skill training and occasional participation in skill training increase the hourly wage of migrant workers by 1.61 yuan and 1.50 yuan, while the impact of other types of training on migrant workers’ wages is not significant. The wage effect of “How to Teach People to Fish” is obvious different. The policy implication is that, the vocational training of migrant workers can change the basis of their future employment and development by raising their wage levels. Therefore, when government departments formulate policies related to vocational training, they should not only pay attention to “Teaching People to Fish”, but also pay full attention to “How to Teach People to Fish”, so as to achieve a fundamental shift from “transfusion” to “hematopoietic”.
/ Journals / Journal of Finance and Economics
Journal of Finance and Economics
LiuYuanchun, Editor-in-Chief
ZhengChunrong, Vice Executive Editor-in-Chief
YaoLan BaoXiaohua HuangJun, Vice Editor-in-Chief
Is “Teaching People to Fish” Effective? The Wage Effect Test of Vocational Training for Migrant Workers
Journal of Finance and Economics Vol. 46, Issue 08, pp. 34 - 48 (2020) DOI:10.16538/j.cnki.jfe.2020.08.003
Summary
References
Summary
[1] Cheng M W, Gai Q E, Shi Q H. Focusing on human capital improvement and income growth[J]. Economic Research Journal, 2016, (1): 168-181. (In Chinese)
[2] Gao M T, Yao Y. T Which is the main reason for income inequality in rural China : Physical assets or human capital?[J]. Economic Research Journal, 2006, (12): 3-12. (In Chinese)
[3] National Bureau of Statistics. 2016 Migrant workers monitoring survey report[M]. http://www.stats.gov.cn/tjsj/zxfb/201704/t20170428_1489334.html, 2017-4-28. (In Chinese)
[4] Jiang J Q, Zhang G S, Yang X L. Heterogeneous of training, skills differentiation and the decision of migrant worker’s wage income[J]. Journal of Agrotechnical Economics, 2016, (10): 20-28. (In Chinese)
[5] Qu X B. The net effect of the contribution of training to the return of human capital investment of rural migrant workers: An estimation with average effect of treatment on the treated[J]. Chinese Rural Economy, 2013, (8): 55-64. (In Chinese)
[6] Wang D W, Cai F, Zhang G Q. Employment and wage determination of rural migrant workers: The role of education and training[J]. China Economic Quarterly, 2008, (4): 1131-1148. (In Chinese)
[7] Wang H G, Huang S A, Li Q, et al. The effect of vocational training on non-farming incomes[J]. Economic Research Journal, 2009, (9): 128-139. (In Chinese)
[8] Xiong X, Nie F Y, Bi J Y. The impact of household training on income in poor areas: A case in Yun Nan, Gui Zhou and Shan Xi province[J]. Journal of Agrotechnical Economics, 2017, (6): 97-107. (In Chinese)
[9] Xu H L, Zhao D Z. Foreign direct investment, labor heterogeneity and transference of redundant rural labor force: Analysis based on neo-classical general equilibrium model[J]. Finance & Trade Economics, 2013, (1): 82-92. (In Chinese)
[10] Yang Y M, Zeng X Q. Training migrant worker and elevation of their employment ability: An empirical study based on the training effect of the Sunshine Project in Henan province[J]. China Labor Economics, 2011, (1): 83-110. (In Chinese)
[11] Yang Y X, Mo X. Does government training improve the migrants’ income? Empirical study based on the Blinder-Oaxaca decomposition[J]. Population & Economics, 2017, (4): 119-126. (In Chinese)
[12] Zhang S W, Wu N. Income effects of training length on migrant workers[J]. Population Journal, 2015, (4): 104-111. (In Chinese)
[13] Zhang X H, Zhu Z G, Liu Y, et al. Vocational training and the income growth on new generation migrant workers: Based on the propensity score matching methods[J]. Statistics & Information Forum, 2017, (3): 114-120. (In Chinese)
[14] Zhao D Z. The impact of FDI on transference of redundant rural labor force: Agglomeration or diffusion[J]. Finance & Trade Economics, 2018, (1):118-131. (In Chinese)
[15] Zhao D Z. Research on threshold effect of local fiscal allocation ability on transfer of redundant rural labor force[J]. Public Finance Research, 2017, (6): 72-83. (In Chinese)
[16] Zhao D Z. A study on the factors influencing the performance of entrepreneurship of peasant workers who return back to their hometown[J]. Economist, 2016, (7): 84-91. (In Chinese)
[17] Zhao Y D, Wang F Y. The economic status acquisition and determinants of the urban and rural floating population[J]. Chinese Journal of Population Science, 2002, (4): 8-15. (In Chinese)
[18] Angrist J D, Krueger A B. Instrumental variables and the search for identification: From supply and demand to natural experiments[J]. The Journal of Economic Perspectives, 2001, 15(4): 69-85.
[19] Becker G S. Investment in human capital: A theoretical analysis[J]. Journal of Political Economy, 1962, 70(5): 9-49.
[20] Blinder A S. Wage discrimination: Reduced form and structural estimates[J]. Journal of Human Resources, 1973, 8(4): 436-455.
[21] Flores C A, Flores-Lagunes A, Gonzalez A, et al. Estimating the effects of length of exposure to instruction in a training program: The case of job corps[J]. Review of Economics and Statistics, 2012, 94(1): 153-171.
[22] Haelermans C, Borghans L. Wage effects of on-the-job training: A meta-analysis[J]. British Journal of Industrial Relations, 2012, 50(3): 502-528.
[23] Hawley S R, St. Romain T, Rempel S L, et al. Generating social capital through public health leadership training: A six-year assessment[J]. Health Education Research, 2011, 27(4): 671-679.
[24] Heckman J, Ichimura H, Smith J, et al. Characterizing selection bias using experimental data[J]. Econometrica, 1998, 66(5): 1017-1098.
[25] Hughes J, Maurer-Fazio M. Effects of marriage, education and occupation on the female/male wage gap in China[J]. Pacific Economic Review, 2002, 7(1): 137-156.
[26] Kirkpatrick D L. Techniques for evaluation training programs[J]. Journal of the American Society of Training Directors, 1959, 13: 21-26.
[27] Kluve J, Schneider H, Uhlendorff A, et al. Evaluating continuous training programmes by using the generalized propensity score[J]. Journal of the Royal Statistical Society: Series A (Statistics in Society), 2012, 175(2): 587-617.
[28] Konings J, Vanormelingen S. The impact of training on productivity and wages: Firm-level evidence[J]. Review of Economics and Statistics, 2015, 97(2): 485-497.
[29] Lechner M, Miquel R, Wunsch C. Long-run effects of public sector sponsored training in west Germany[J]. Journal of the European Economic Association, 2011, 9(4): 742-784.
[30] Lucas R E. On the mechanics of economic development[J]. Journal of Monetary Economics, 1988, 22(1): 3-42.
[31] Mincer J. On-the-job training: Costs, returns, and some implications[J]. Journal of political Economy, 1962, 70(5): 50-79.
[32] Oaxaca R L, Ransom M R. On discrimination and the decomposition of wage differentials[J]. Journal of Econometrics, 1994, 61(1): 5-21.
[33] Romer P M. Increasing returns and long-run growth[J]. Journal of Political Economy, 1986, 94(5): 1002-1037.
[34] Rosenbaum P R, Rubin D B. The central role of the propensity score in observational studies for causal effects[J]. Biometrika, 1983, 70(1): 41-55.
[35] Schoellman T. Early childhood human capital and development[J]. American Economic Journal: Macroeconomics, 2016, 8(3): 145-174.
[36] Schultz T W. Investment in human capital[J]. The American Economic Review, 1961, 51(1): 1-17.
[37] Yang D T. Education and allocative efficiency: Household income growth during rural reforms in China[J]. Journal of Development Economics, 2004, 74(1): 137-162.
[38] Zhang L, Huang J, Rozelle S. Employment, emerging labor markets, and the role of education in rural China[J]. China Economic Review, 2002, 13(2): 313-328.
Cite this article
Zhao Dezhao, Geng Zhibin. Is “Teaching People to Fish” Effective? The Wage Effect Test of Vocational Training for Migrant Workers[J]. Journal of Finance and Economics, 2020, 46(8): 34-48.
Export Citations as:
For
ISSUE COVER
RELATED ARTICLES