Evaluating Job Training in Two Chinese Cities

Journal of Chinese Economic and Business Studies, Vol. 7, No. 1, pp. 77-94, 2009

Upjohn Institute Staff Working Paper No. 05-111

42 Pages Posted: 12 Aug 2005 Last revised: 24 Dec 2010

See all articles by Benu Bidani

Benu Bidani

World Bank

Niels-Hugo Blunch

Washington and Lee University; IZA Institute of Labor Economics

Chor-Ching Goh

The World Bank

Christopher J. O'Leary

W.E. Upjohn Institute for Employment Research

Date Written: March 1, 2005

Abstract

Recent years have seen a surge in the evidence 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 massive lay-offs, and accompanying public retraining programs make China fertile ground for rigorous impact evaluations. This study evaluates retraining programs for laid-off workers in the cities of Shenyang and Wuhan using a comparison group design. To our knowledge, this is 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. However, in terms of earnings impacts, retraining appears to have increased earnings in Shenyang but not in Wuhan. The study raises questions about the overall effectiveness of retraining expenditures, and it offers some directions for policymakers about future interventions to help laid-off workers.

Keywords: Active labor market programs, job training, impact evaluation, propensity score matching, China

JEL Classification: J23, J31

Suggested Citation

Bidani, Benu and Blunch, Niels-Hugo and Goh, Chor-Ching and O'Leary, Christopher J., Evaluating Job Training in Two Chinese Cities (March 1, 2005). Journal of Chinese Economic and Business Studies, Vol. 7, No. 1, pp. 77-94, 2009, Upjohn Institute Staff Working Paper No. 05-111, Available at SSRN: https://ssrn.com/abstract=774147 or http://dx.doi.org/10.2139/ssrn.774147

Benu Bidani

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Niels-Hugo Blunch

Washington and Lee University ( email )

Department of Economics
Lexington, VA 24450
United States

HOME PAGE: http://www.wlu.edu/williams-school/economics/faculty-and-staff/profile?ID=x258

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Chor-Ching Goh

The World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Christopher J. O'Leary (Contact Author)

W.E. Upjohn Institute for Employment Research ( email )

300 South Westnedge Avenue
Kalamazoo, MI 49007-4686
United States
269-343-5541 (Phone)
269-343-3308 (Fax)

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