Open Access. Powered by Scholars. Published by Universities.®

Education Commons

Open Access. Powered by Scholars. Published by Universities.®

PDF

Economics

Singapore Management University

China

Articles 1 - 1 of 1

Full-Text Articles in Education

Economic Transition, Higher Education And Worker Productivity In China, Belton Fleisher, Yifan Yu, Haizheng Li, Seonghoon Kim Jan 2011

Economic Transition, Higher Education And Worker Productivity In China, Belton Fleisher, Yifan Yu, Haizheng Li, Seonghoon Kim

Research Collection School Of Economics

We investigate the role of education on worker productivity and firms' total factor productivity using a panel of firm-level data from China. We estimate the returns to education by calculating the marginal productivity of workers of different education levels based on estimates of the firm-level production function. We also estimate how the education level of workers and CEO contributes to firms' total factor productivity. Estimated marginal products are much higher than wages, and the gap is larger for highly educated workers. Our estimate shows that an additional year of schooling raises marginal product by 30.1%, and that CEO's ...