indeed education measured by years of schooling is positively correlated with capital intensity in manufacturing qu and cai as most of the workforce in china is composed of junior and senior highschool graduates there is ample scope for investment in education and training to boost labour productivity labour productivity would be higher if junior highschool graduates had senior highschool education and would double if senior highschool 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