Indeed, education, measured by years of schooling, is positively correlated with capital intensity in manufacturing (Qu and Cai, 2011). As most of the workforce in China is composed of junior and senior high-school graduates, there is ample scope for investment in education and training to boost labour productivity. Labour productivity would be 23% higher if junior high-school graduates had senior high-school education and would double if senior high-school graduates had college training. Higher education attainment alone, however, may not be sufficient. To adapt to the changing industry structure, a broad set of skills and wide general knowledge are needed, which facilitate the acquisition of new skills.