Earnings, Education and Training in China: The Migrant Worker Experience

Abstract

We utilise a new household survey to examine the impact of education and job training on labour income for migrant workers in China. Quantile regression is employed to account for selection bias. The evidence has as follows: (a) the returns to education and work experience are considerable but non-linear; (b) job training is valuable; (c) the Hukou system of residence is a severe constraint on gains to work experience; and (d) women earn more than men due to endowment effects. This evidence calls for new policy initiatives in China to raise the skills of migrant workers and abolish discriminatory policies.