urbanization and FDI of China

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CHINA ECONOMIC 

GROWTH

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Mohamed Adirizak (S2583348)
Merijn Schakelaar
Aron Tepper

March 12, 2014 Economics and business economics

University of Groningen First draft


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Table of contents

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1. Introduction

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Type chapter title (level 1)

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Type chapter title (level 2)

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Type chapter title (level 3)

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Type chapter title (level 1)

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Type chapter title (level 1)

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Conclusion 4

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1. Introduction

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2. Transition of labor To explain the transition from low skilled labor to high skilled labor, we first look at the incentives for workers to make the transition. Secondly we discuss the higher education numbers. At last we look at changes it made in rural agricultural China.

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To have a transition from low skilled labor to high skilled labor, workers have certain incentives to make a change. Figure two shows the difference in earnings by certain degrees of education. The distinction is made between college and high school graduates and college and junior high or lower education graduates.

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From 1989 to 2009, according to the data, income differences between college graduates and high school graduates have steadily increased and reached a maximum in 2002. Furthermore, the income differentials between junior high and below education increased also, topping the chart in 2008.

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The graph shows that there has been an modest increasing trend the past few years. According to Chi (2012), a possible explanation for this phenomen might be that the pay still had less variance from the pre-reform labor market.
Moreover, since 1999 the number of enrolled students in higher education increased spectactualy, adding to the high skilled labor force of China.

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