Employment Effect And Income Effect Of Training

In the labor market, training as a form of human capital investment, has beenone of the topics of labor economics research. At present, due to the lack of microdata, the study of influence is relatively rare, which is about training effect onemployment and income in the labor market of China. Based on the employmentequation, the wage equation and tendency points matching method, themicro-econometric methods is applied to analysis the determinants of training in2006urban and rural residents, employment effects of training and income effects oftraining with the system method.Firstly, the logit model is applied to estimate the influence factors to training.Estimation results show that the variables, such as age, education level, workexperience, technology level, and the fixed number of year to sign labor contract,have notable effect on the probability about individual labor force to participate intraining.Secondly, the training as a binary choice of virtual variable is introduced toemployment equation. Through the regression estimation equation of employment,the estimation results show that training have a positive influence on employment.And the employment probability of attend training individual is higher than did notattend training individual by6%.Finally, the wage equation is applied to analysis the influence of training to laborincome. Results show that training has positive effect on individual income. So thetendency points matching method is used to estimates for labor individual trainingincome effect again. The results show that, in men labor market, month income maybe an increase of160yuan for participates in the training of the labor force, while thenumber is142yuan in the women labor market.The results of the study have deepened our understanding about market operation rule about our China urban labor market, and give help to evaluate anddesign the training policy in government department.