Training determinants and productivity impact of training in China: A case of Shanghai

While much is known about the economics of training in the developed world, studies of issues associated with training in less-developed countries are rarely found. Based on a survey conducted in China, the present study attempts to fill this gap. Job characteristics and firm background were found to play key roles in determining training provision. Workers who received off-the-job training were less likely to receive on-the-job training, while those who received on-the-job training were neither more nor less likely to have received off-the-job training. However, a complementary relationship was found between receiving informal training and receiving on-the-job or off-the-job training. Earnings differentials were not found to correlate with different types of training. Unlike in developed countries, training in China was usually intended to remedy skills deficiencies, rather than enhance productivity.