1. Schultz, T., Investment in Human Capital (New York: The Free Press, 1971).Google Scholar

2. Thurow, L., The Future of Capitalism (New York: Penguin, 1996).Google Scholar

3. Reich, R., The Work of Nations (New York: Vintage, 1992).Google Scholar

4. Eicher, J., “International educational expenditures,” in Carnoy, M. (ed.), International Encyclopaedia of Economics of Education, 2nd edition (Oxford: Pergamon, 1995), pp. 443–450.Google Scholar

5. Organization for Economic Co-operation and Development (OECD), Learning Opportunities for Adults, Vol. 1 (Paris: OECD, 1977).Google Scholar

6. Belanger, P. and Tuijnman, A., “The ‘silent explosion’ of adult learning,” in Belanger, P. and Tuijnman, A. (eds.), New Patterns of Adult Learning: A Six-country Comparative Study (Oxford: Pergamon, 1997) pp. 1–16.Google Scholar

7. U.S. Department of Labor, Learning the Tool and Die Maker Trade, Manpower Research and Development Monograph No. 17 (Washington, DC: U.S. Printing Office, 1970)Google Scholar; Brown, C., “Empirical evidence on private training,” in Commission on Workforce Quality and Labor Market Efficiency (eds.), Investing in People (Washington, DC: U.S. Department of Labor, 1989).Google Scholar

8. Tuijnman, A. C., “Providers of adult education: an overview,” in Tuijnman, A. C. (ed.), International Encyclopaedia of Adult Education and Training (Oxford: Pergamon, 1996), p. 617.Google Scholar

9. Bowman, M. J., “Training on the job,” in Tuijnman, (ed.), International Encyclopaedia of Adult Education and Training, pp. 69–75Google Scholar; Hunter, J. M., Borus, M. E. and Mannan, A., Economics and Non-formal Education (Michigan State University: Institute for International Studies in Education, 1974).Google Scholar

10. Tsang, M. C., “The costs of adult education and training,” in Tuijnman, A. C. (ed.), International Encyclopaedia of Adult Education and Training.Google Scholar

11. Middleton, J., Ziderman, A. and Adams, A. V., Skills for Productivity: Vocational Education and Training in Developing Countries (New York: Oxford University Press, 1993)Google Scholar; Ziderman, A. and Horn, R., “Many paths to skilled employment: a reverse tracer study of seven occupations in Colombia,” Education Economics, Vol. 3, No. 1 (1995), pp. 61–79.CrossRefGoogle Scholar

12. China Central Committee and the State Council, Decisions on Strengthening Employee Training, Central Committee Document No. 8 (Beijing: The State Council, 20 February 1981)Google Scholar; China Education Yearbook (eds.), “Report on restructuring secondary education by China the State Education Ministry and Labor Ministry and endorsed by the State Council,” in China Education Yearbook 1949–1981) (Beijing: China Encyclopaedic Press, 1984), pp. 708–709Google Scholar; People's Press, Documents on the Reform of the Educational System (Beijing: People's Press, 1985) pp. 1–18; Tsang, M. C., “The structural reform of secondary education,” Journal of Educational Administration, Vol. 29, No. 4 (1991), pp. 65–83CrossRefGoogle Scholar; and Xiao, J., “Higher adult education in China: redefining its roles,” in Agelasto, M. and Adamson, B. (eds.), Higher Education in Post-Mao China (Hong Kong: Hong Kong University, 1998).Google Scholar

13. China State Education Commission, “The Ninth Five-Year Plan of the national education and development plan for 2010,” in Policy Report of State Education Commission, Vol. 6 (Beijing: China State Education Commission, 1996), pp. 219–227.Google Scholar

14. Ibid.

15. Shenzhen Municipality, formerly named Baoan county, is about 2,020 square kilometres. Shenzhen includes three districts – Shenzhen Special Economic Zone, and two rural districts, Baoan and Longgang. As economic development in the special zone has strong impacts on the two rural districts, “Shenzhen” in this study refers to all three districts.Google Scholar

16. Sung, Yun-wing, The Economic Integration of Hong Kong with China in the 1990s: The Impact on Hong Kong, Canada and Hong Kong Project, Research Paper No. 1 (Toronto: University of Toronto–York University Joint Centre of Asia Pacific Studies, 1992), pp. 1–5Google Scholar; Organization for Economic Co-operation and Development (OECD), China's Special Economic Zones (Paris: OECD, 1986).

17. Xiao, J., “Education expansion in Shenzhen, China: its interface with economic development,” International Journal of Educational Development, Vol. 18, No. 1 (1998), pp. 3–19.CrossRefGoogle Scholar

18. Li, Q. S., “Foreign investment on a large scale,” in Shenzhen Special Economic Zone Yearbook 1995 (Shenzhen: Shenzhen Special Economic Zone Publishing House, 1995), pp. 88–91.Google Scholar

19. Xiao, J., “Education expansion in Shenzhen, China.”Google Scholar

20. Shenzhen Municipal Policy Research Office (SMPRO), Ten Years in Shenzhen (Shenzhen: Haitian Press, 1990).Google Scholar

21. Xiao, J. and Tsang, M., “Costs and financing of adult education in Shenzhen, China,” International Journal of Educational Development, Vol. 14, No. 1 (1994), pp. 51–64.CrossRefGoogle Scholar

22. Xiao, J., “Education expansion in Shenzhen, China.”Google Scholar

23. Xiao, J. and Tsang, M., “Costs and financing of adult education in Shenzhen, China.”Google Scholar

24. Ziderman, and Horn, , “Many paths to skilled employment.”Google Scholar

25. Tsang, M. C., “The costs of adult education and training”Google Scholar; Tsang, M. C., “The costs of vocational training,” International Journal of Manpower, Vol. 18, Nos. 1/2 (1997), pp. 63–89CrossRefGoogle Scholar; Xiao, J., “A study of the relationship between organizational factors and the transfer of training in the electronics industry in Shenzhen, China,” Human Resource Development Quarterly, Vol. 7, No. 1 (1996), pp. 55–73CrossRefGoogle Scholar; Xiao, J. and Tsang, M., “Costs and financing of adult education in Shenzhen, China,” pp. 51–64Google Scholar; Xiao, J., “Education expansion in Shenzhen, China.”Google Scholar

26. The eight types of ownership refer to state-owned; collectively owned; joint-ventures with firms from Hong Kong, Macau and Taiwan; joint-ventures with firms from other countries; sole-investment firms from Hong Kong, Macau and Taiwan; sole-investment firms from other countries; local private firms; and corporate firms. The first two are considered typical in the planned economy and the latter six are new forms of ownership that have occurred in the transferred economy after 1980. Due to space constraints, this paper does not present results on training and education in enterprises of different ownership, which fall into another focus of analysis.Google Scholar

27. Shenzhen has a population of 3.4 million with a workforce of 2.45 million. Among this workforce, there are 0.46 million town inhabitants, 1.1 million village dwellers, 0.89 million registered employees and 0.05 million others. The first group consists mostly of original local populations who now own village-run enterprises and rent premises for a living. The second and the third groups consist mostly of the immigrating population from other parts of China. They held temporary residence permission status when they first came. Those in the second group usually find a temporary job in village-run enterprises, usually in the two rural districts, Baoan and Longgang. Those in the third group are hired by firms and organizations in the formal sectors that register their employees with the municipal government labour department or personnel department. These registered firms are located in all three districts in Shenzhen, but are mostly in the urban areas. Employers of the second and third groups could apply to the government to convert the temporary residence permission of their employees into a permanent one when they have completed more than one contract term or worked over three years, but on the conditions that the employees' skills are important to the production or service of the organization and development projects in Shenzhen. Otherwise, employees could stay with the employers on renewable contracts and temporary residence permissions. Currently, Shenzhen has kept its permanent resident rate at 29%. For our study, we only sampled the third group, the registered workforce.Google Scholar

28. World Bank, World Development Report 1997 (New York: Oxford University Press, 1997), p. 200.Google Scholar

29. China State Statistics Bureau, China Statistical Yearbook 1995 (Beijing: China Statistical Publishing House, 1995), p. 61.Google Scholar

30. When hiring, employers usually prefer upper-secondary graduates around 20 years old, but under 25 years of age. For managerial and professional staff, they look for individuals under 35 years and holding a university degree. In this newly-emerging Shenzhen, employers expect hard-working employees in developing new projects. What's more, younger employees have more years ahead of them to contribute to projects. Also see Shenzhen Special Economic Zone Yearbook Personnel, Shenzhen Special Economic Zone Yearbook 1995 (Shenzhen, 1995), pp. 147–14.Google Scholar

31. Occupational classification is defined in very general terms in China. Managerial staff include those for business administration and production management, which are new positions in the Shenzhen economy. Professionals include personnel engaged in research and technical aspects of project design, engineers, financial personnel and factory-floor technicians. Sales is also a new job category to emerge in the market-oriented economy. As for clerks, this traditional support occupation in the Chinese context re-emerged as a new occupation. Besides traditional clerical support, clerks often have to perform some semi-professional and technical tasks (such as computing). “Skilled workers” refer to those who have obtained intermediate or above skill proficiency and/or have technical responsibility for quality control and mentoring unskilled workers in the work group. Non-skilled workers refer to those unskilled or semi-skilled employees who are at the entry level on the production line or in a firm. Others include non-skilled jobs such as cleaning, building custodian, gate-keepers and security personnel. The conventional skill proficiency scale for workers consists of eight levels. Levels 1 to 3 are referred to as entry level, levels 4 to 6 are intermediate, and 7 to 8 are senior workers who can be considered technicians. In Shenzhen a simplified scale of entry, intermediate and senior levels is in use.Google Scholar

32. See above, notes 27 and 30.Google Scholar

33. Xiao, J., “Education expansion in Shenzhen, China.”Google Scholar

34. Tsang, M. C., “The costs of vocational training.”Google Scholar

35. These programmes include economics and finance, electronics and electrical engineering, humanities subjects, construction engineering, accounting and clerkship, business administration, management in industry, public relations and sales, adult secondary specialized certificate study, adult secondary upper-general certificate study, business law, transportation and road engineering, art and design, journalism, continuing studies in medicine, cuisine, biology and food processing, security guard training, sports training, quality control in industry, and so on. Another study (see J. Xiao, “Education expansion in Shenzhen, China”) found that adult education centres offer almost all the vocational and technical programmes that VTE schools or specialized secondary schools offer, except three specialized occupations-policing, kindergarten teachers and nursing. See J. Xiao, “Education expansion in Shenzhen, China,” Table 8.Google Scholar

36. A three-hour course is counted as a half-day, six-hour courses are counted as a whole day.Google Scholar

37. New recruits from other parts of China have to apply for residence permission from the Shenzhen government. Attainment of basic education is a requirement.Google Scholar

38. Shenzhen Yearbook Commission, Shenzhen Yearbook (Shenzhen: Shenzhen Year-book Commission, 1997)Google Scholar, p. 529; Xiao, J., “Education expansion in Shenzhen, China.”Google Scholar

39. This pattern is observed in both gender groups and in both the service and industrial sectors.Google Scholar

40. In the 1990s industrial products were more diversified. Thus the proportion of the electronics industry's contributions to the total industrial output decreased somewhat but still remains the single most important product category among more than two dozen major industries. From all other product categories, none accounts for more than 8% of total industrial output. See Industry Section, Shenzhen Statistical Yearbooks 1985, 1990 and 1993 (Shenzhen: Shenzhen Yearbook Commission, various years). Data on exports after 1992 are not available.Google Scholar

41. For the sake of clarity, Figure 4 omits information on the distribution of on-the-job training and adult education by education qualifications. The analysis showed that among those with vocational/technical education qualifications, 52% had on-the-job training, and 22% had adult education. Among those with general education qualifications, 48% had on-the-job training and 20% had adult education. For those having obtained post-secondary education, 52% received on-the-job training while 48% had adult education. This on-the-job training was provided equally to all groups with different education qualities. Skilled workers with post-secondary education qualifications also attended more adult education than other groups.Google Scholar

42. Xiao, J., “Education expansion in Shenzhen, China.”Google Scholar

43. Shenzhen Yearbook Commission, Shenzhen Yearbook, p. 529.Google Scholar

44. Tsang, M. C., “Costs of education in China: issues of resource mobilization, equality, equity and efficiency,” Education Economics, Vol. 2, No. 3 (1994), pp. 287–312, esp. p. 291.CrossRefGoogle Scholar

45. Xiao, J., “Education expansion in Shenzhen, China.”Google Scholar

46. Xiao, J. and Tsang, M., “Costs and financing of adult education in Shenzhen, China.”Google Scholar

47. Training provided by employers was also perceived by employees as trust in them and served as a binding force, which encouraged employees to stay with the firm. Turnover was not seen as a problem in firms.Google Scholar

48. Xiao, J. and Tsang, M., “Costs and financing of adult education in Shenzhen, China.”Google Scholar

49. Xiao, J., “Education expansion in Shenzhen, China.”Google Scholar

50. Ibid.

51. Initially, the policy called for an equal distribution between the two tracks. In the 1990s, the government asked for an even higher percentage of enrolment in the vocational/technical track (60–70%), especially in urban areas.Google Scholar

52. Tsang, M. C., “The structural reform of secondary education.”Google Scholar

53. Tsang, M. C., “The costs of vocational training”Google Scholar; Xiao, J., “Education expansion in Shenzhen, China.”Google Scholar

54. Min, W. F. and Tsang, M. C., “Vocational education and productivity: a case study of the Beijing General Auto Industry Company,” Economics of Education Review, Vol. 9, No. 4 (1990), pp. 351–364.CrossRefGoogle Scholar

55. Yang, J., The Interaction Between the Socialist Market Economy and Technical and Vocational Education and Training in the People's Republic of China (University of Manchester and Bolton Institute: PhD dissertation, 1997).Google Scholar

56. See, for example, data produced by this study, and Lo, L. N. K. and Lee, C. H., “In rural China: which road to relevant education?” Educational Leadership, Vol. 35, No. 8 (1996), pp. 60–63.Google Scholar

57. Xiao, J., “Education expansion in Shenzhen, China.”Google Scholar

58. Tsang, M. C., “The structural reform of secondary education”Google Scholar; Lai, M. H. and Lo, L., “Vocational education in China's rural towns: a comparative study on the developmental experience of two rural towns in the province of Guangdong,” Education Journal, Vol. 24, No. 1 (1996), pp. 24–42Google Scholar; Lo, L. N. K. and Lee, C. H., “In rural China: which road to relevant education?”Google Scholar

59. Lai, M. H. and Lo, L., “Vocational education in China's rural towns.”Google Scholar

60. State Education Commission, Achievement of Education in China: Statistics, 1980–1985 (Beijing: People's Education Press, 1986);Google Scholar State Education Commission, Educational Statistics Yearbook of China 1995 (Beijing: People's Education Press, 1996).Google Scholar

61. Xiao, J., “Higher adult education in China: redefining its roles.”Google Scholar

62. Ziderman, and Horn, , “Many paths to skilled employment.”Google Scholar

63. Organization for Economic Co-operation and Development (OECD), Education at a Glance: OECD Indicators (Paris: Centre for Educational Research and Innovation, OECD, 1996), table P8, p. 133.Google Scholar

64. Organization for Economic Co-operation and Development (OECD), Employment Outlook (Paris: OECD, 1991), ch. 5.Google Scholar

65. Ziderman, Middleton and Adams, , Skills for Productivity: Vocational Education and Training in Developing Countries, ch. 6Google Scholar

66. San, G., “Enterprise training in Taiwan: results from the vocational training needs survey,” Economics of Education Review, Vol. 9, No. 4 (1990), pp. 411–41.CrossRefGoogle Scholar

67. Bishop, J., The Social Payoff for Occupationally Specific Training: The Employers' Point of View (Columbus, Ohio: National Center for Research on Vocational Education, 1982).Google Scholar

68. American Society for Training and Development, 1995 Industry Report (Alexandria, VA: American Society for Training and Development, October 1995).Google Scholar

69. American Society for Training and Development, 1996 Industry Report (Alexandria, VA: American Society for Training and Development, October 1996).Google Scholar

70. Tsang, M. C., “The costs of adult education and training.”Google Scholar

71. Organization for Economic Co-operation and Development (OECD), Learning Opportunities for Adults.Google Scholar

72. Hill, S. T., Trends in Adult Education 1969–1984 (Washington, DC: Centre for Education Statistics, 1985).Google Scholar

73. Brookfield, S. D., Understanding and Facilitating Adult Learning: A Comprehensive Analysis of Principles and Effective Practices (San Francisco: Jossey-Bass, 1986), pp. 148–150.Google Scholar

74. Xiao, J., “A study of the relationship between organizational factors and the transfer of training in the electronics industry in Shenzhen, China.”Google Scholar