Study On Issues Of China's Public Employment Training

From the economic growth courses of countries, particularly from the fact that economies of those countries (regions) not abundant in natural resources are soaring, it could be found that human capital, along with material capital, labor work and advanced technology, drives the growth of economy and plays a more and more remarkable role. Training, as a significant approach of human capital investment, if conducted by the educational departments, provides not only professional human capital needed by various sectors of national economy, but also non-professionals. The supply-demand of China's labor force is gradually transferring from the state of "supply-over-demand" to the structural unbalance of "surplus but insufficient", where lots of laid-off workers in towns and cities need reemployment and a good many rural surplus labor force need transferring but are hindered by low levels of employment capabilities and education. Therefore, in terms of governmental responsibilities, it brooks no delay intensifying employment training for laid-off workers and rural surplus labor force to improve the effectiveness of public employment training.Based on the above-mentioned background, this paper will elaborate on issues concerning the subject of Public Employment Training. In order to improve the effectiveness of public employment training and provide theoretical ground for the government to better public, employment training administration, as well as enrich studies on public administration, the paper will analyze the role played by employment training in our national economy by introducing human capital and Neo-Economic Growth Theory and will conduct deep researches on management system, supply approach and operational mechanism by using New Pubic Administration and New Public Service Theory.The paper includes four parts as follows:Part One, namely Chapter One: Theories on Public Employment Training, mainly collates different related theories. In this paper, public employment training is placed in the frame of public service. Thus, New Public Administration Theory brought about by a number of vigorous New Public Administration campaigns in western countries since 1970s, together with New Public Service aiming at rectifying the partiality of New Public Administration, serves as important theories in this paper. In the mean time, public employment training is a crucial approach of human capital investment. Hereby, Human Capital Theory and Neo-Economic Growth Theory also provide theoretical foundation for this paper. Part Two, mainly Chapter Two: Empirical Studies on the Relationship Between Education & Training and Economic Growth, applies theories of human capital and Neo-Economic Growth to empirical studies on the role played by employment training in our national economy, trying to, from both the average and the key levels, find out the contribution made by education and training to our economic development. I firstly use theories of human capital and Neo-Economic Growth to calculate the contribution of human capital to economic growth of six provinces in the Central China, followed by analyses on the impact brought about by education and training on the incomes of farmers in the six provinces of Central China by way of sampling and investigation, and followed by researches on the relationships among education level, training length and work period and rural laborers' incomes in a quantitative way.Part Three, namely Chapter Three: Major Fields and Effects of China's Public Employment Training, mainly deals with the generalization about the implementation of such public employment training plans in 1990s as Re-employment Training Plan for Laid-off Workers, Capability-Entrepreneuriality Plan, Sunshine Project of Transferring and Training Rural Labor Force, Employment Plan for Skills and Capabilities of Rural Labor Force etc, analyses on the implementation of China's Public Employment Training in the Central Areas through investigation and data, and overall appraisals about China's public employment training. Owing to that, I hold the viewpoint that China's public employment training has given birth to some achievements in perfecting system of public employment service, exploring new modes of public services and upgrading human capital, however, the training is still affected by a lot of factors because of the absence of a long-term effective public employment training mechanism. This part serves as the research foundation for Chapters Four, Five and Six.Part Four, a key part of this paper, includes Chapters Four, Five and Six, which are interconnected and interrelated. In this part, application of theories of new public administration and new public service conduces to a profound research on the three core issues in China's public employment training, namely management system (or how to manage), supply approach (or who provides funds) and operational mechanism (or how to provide). Corresponding countermeasures and suggestions have been put forward.Chapter Four, Management System of China's Public Employment Training, deals with the operational state of management system of China's public employment training, which is urban-rural segregated and self-dependant. Dual Economic Theory and Labor Force Market Segregation Theory have been made use of to analyze the establishment and consequence of china's dual public employment training system. Modern Organization Theory have been employed to analyze the establishment and operation of managerial organs, giving birth to the viewpoint that in order to reform management system of China's public employment training we should borrow western notions of new public service, nurturing talents in the grass roots and encouraging agencies to join public training, as well as reforming management macro-system.Chapter Five---Supply Approaches of China's Public Employment Training. In this chapter, based on the overall analysis of current situation of China's public employment training, researches have been made on the nature and externality of the quasi-goods of public employment training by the introduction of Public Economics, as well as on the resulting problems about low initiatives taken by individuals, enterprises and local governments to participate in public employment training. Meanwhile, a comparison among different kinds of employment training supply modes has been made to prove that a mixed supply mode of employment training is scientific and realistic for China's public employment training. Hereby, it has been put forward that rural labor force transferring and training expenditure should be included in the public financial budgets of governments at all levels and mechanism should be established to induce various stakeholders to actively participate in public employment training.Chapter Six---Operational Mechanism of China's Public Employment Training. In this chapter, a relationship graph of stakeholders in China's public employment training has been set up, with analyses about the operational method of every process and the institutional arrangement. With that basis I generalized nine modes of operational mechanism of China's public employment training, falling into two types, namely government-dominated and market-dominated. Theory of Public Administration has been adopted to compare and analyze the two types. Meanwhile, theoretical comments and practical survey have been made on the major operational modes of China's public employment training. Accordingly, proposals have been put forward that reforms about the government-dominated mode of public employment training should be carried out to separate its production function from governmental functions. Finally a system of financial subsidy has been formulated.Characteristics and originalities are as follows:1. Of research fields and perspectives. In this paper, a number of plans, which are decentralized in every government managerial organs and aimed at laid-off workers and rural surplus labor force, are placed in the frame of public employment service, even of public service and studied from the perspective of public administration, which is rare in China. In the mean time, an analysis structure of combining management system, supply approach and operational mechanism has been introduced to study the main problems of public employment training, showing a complete understanding of problems of China's public employment training. 2. Of some valuable conclusions made through collecting, assorting and analyzing the first-hand information. In the process of preparing for the paper, I did questionnaires and on-the-spot investigation about the transferring and training of rural surplus labor force in some central provinces such as Jiangxi, Hunan, Henan and Anhui etc, having a comparatively accurate understanding of the current state of transferring and training of rural surplus labor force and minds of stakeholders in those areas. Meanwhile, by way of quantitative analysis, studies have been conducted on the relationships among rural laborers' education level, training length, work period and income, thus giving birth to some valuable conclusions as follows:a) Rural laborers' average monthly income increases with their employment years as a whole, while there is a slight drop when employment experience reaches over 10 years.b) With the increase of training length, rural laborers' income goes up. Short-term training leaves little impact on income, however, 3-months or above training leads to a leap in income.c) The higher the education level is, the more their income would be, especially true for those who have received junior high schooling.3. Of viewpoints and countermeasures. In the process of study, the following viewpoints have been formed:a) Introducing a highly centralized management system with strict division of labor, China's public employment training system is an extension of China's household register system, as well as a display of China's traditional bureaucracy.b) Owing to the fact that employment training, which is quasi-public goods, enjoys both the nature of club goods and externality, it is necessary for governments to supply it. The mixed supply mode will be of high efficiency and a scientific and realistic option to our public employment training.c) With regards to institutional arrangement of public goods supply system, it is a tendency to separate supply function from production function. And in terms of China's public employment training, production function should be separated from government function and institutional arrangements of public employment training should be altered from the government-trainee relationship to the government-independent training agency-trainee relationship.。Additionally, some valuable countermeasures and proposals have been put forward. For example, in order to reform management systems of China's public employment training we should borrow western notions of new public service, nurturing talents in the grass roots and encouraging agencies to join public training, as well as reforming management macro-system. Rural labor force transferring and training expenditure should be included in the public financial budgets of governments at all levels. Governments should integrate the purchase of training results with the distribution of training voucher to carry out the system of Double Choice. Besides, direct subsidies should be granted to those laborers who have gained a certain number of skills. Such preferential policies as direct subsidies and tax reduction and exemption should be implemented to enterprises who recruit laid-off workers or rural labor workers for the technology positions. And a system of financial subsidy has been designed.4. Of applying analysis methods to new research fields. Methods are used to research on adverse impacts on farmer's training brought about by public employment training system and to conduct researches on enterprises' lack of training drives in Chapter Four and Five respectively. In Chapter Six, by utilizing Theory of Stakeholders, a graph of relationship among stakeholders in China's public employment training has been drafted, clearly depicting their relationships and government's institutional arrangements.