Has Training Helped Employ Xiagang in China? A Tale from Two Cities

This study evaluates the effectiveness of training programs for workers retrenched from Chinese state-owned enterprises in the cities of Shenyang and Wuhan. A variety of impact estimators were applied, however ordinary least squares (OLS) controlling for observable characteristic s was robust. We find that training dampens reemployment prospects in Shenyang but improves them in Wuhan. Training impact estimates computed by propensity score and log odds ratio matching imposing various support condition rules, yielded estimates very similar to those from the OLS. The estimates suggest that participation in training reduces the probability of being employed one year after participation by about 6 percentage points in Shenyang, but increases the employment likelihood by about 8 percentage points in Wuhan. Among those who are reemployed, training does not have any effect on earnings.

Bidani, Coh and O'Leary (2002)Urban (Shenyang and Wuhan).Three different treatment/comparison group samples analyzed using multiple methodologies that include prop score matching, matching on odds-ratios and OLS.Retraining and job search assistance, administered by local labor bureaus, to promote labor market entry of people laid off by state-owned enterprises. One month training courses in computer training, beauty and massage, hair cutting, sewing, toy making, cooking, repair training and driver education. Class sizes during the training sessions were often large with 200 to 300 workers in a small classroom.Positive impact on employment probability in Wuhan. No effect on earning in Shenyang. Negative effect on employment probability in Shenyang.http://info.worldbank.org/etools/docs/library/75867/dc2003/proceedings/pdfpaper/...Adults.