How is Higher Vocational Education’s Contribution to Industry Reflected in Firm Productivity?

Kangli Xiang

doi:10.6981/FEM.202611_7(11).0008

Authors

Kangli Xiang School of Digital Economy and Trade, Wenzhou Polytechnic University, Wenzhou 325035, China

DOI:

https://doi.org/10.6981/FEM.202611_7(11).0008

Keywords:

Regional Higher Vocational Education Development; Total Factor Productivity; Labor Productivity; Formal Innovation; Ownership Heterogeneity.

Abstract

Using data on Shanghai and Shenzhen A-share listed firms from 2004 to 2023, this study constructs a provincial-level index of higher vocational education development and employs a two-way fixed-effects model to examine its relationship with firm productivity. Regional higher vocational education development is significantly and positively associated with total factor productivity (TFP), and this relationship remains when labor productivity is used as a supplementary outcome. R&D investment and patent output are not the main channels. The TFP association does not differ significantly by ownership, whereas state-owned enterprises (SOEs) show a stronger labor-productivity response. These findings suggest improving the evaluation of higher vocational education’s contribution to industry, placing greater emphasis on technology application and production operations, and better aligning workforce development with firms’ job requirements.

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