Vocational education reform and corporate skilled human capital: Evidence from China

Abstract

This paper uses panel data from China at the city, college, and corporation levels and employs the difference‐in‐differences method to study the impact of the Vocational Education Reform (VER) on corporate skilled human capital. We find that (1) the VER significantly increases the level of corporate skilled human capital. (2) The impact of the VER on corporate skilled human capital is long‐lasting and sustained. (3) The VER strengthens the human capital in regional manufacturing by boosting funding for vocational education, raising the level of science education in schools, and promoting corporate development, thereby increasing the demand for skilled human capital.