EDUCATION, EXPERIENCE AND PRODUCTIVITY OF LABOR IN CHINA TOWNSHIP ANDVILLAGE ENTERPRISES - THE CASE OF JIANGSU PROVINCE

In this paper, we analyze the productivity of. different categories of labor and capital by estimating a production function using micro dat a of 140 industrial township and village enterprises located in 15 cou nties in Jiangsu province for the years 1989 and 1990. It is estimated that the annual marginal productivity of labor was 19,282 yuan for te rtiary educated workers and 2,175 yuan for workers with lower educatio n at 1990 prices. It is also found that there is not much difference i n marginal productivity of labor when work experience is considered. I nvited personnel and joint operations can help to increase the perform ance of firms significantly. The estimated marginal productivity of ca pital was quite high. The rate of return on capital reached about 30%. JEL Classification Numbers: D24, J24, and O12.