Personal Risk Investment Income Families Of Migrant Workers Children Education

As the important premise and the basis, the risk of personal investment return in higher education plays a critical role in optimizing the human resource allocation and improving its utilization efficiency. As a result, this issue has gradually become the focus of the current educational economic research. The analysis of this risk began when the essential attribute of the higher educational investment was studied. From the aspect of this attribute, our higher education could be viewed, and this highlights the gradual strengthening of the attribute of coexistence in productivity and consumption. Human Capital Theory, Public Goods Investment Theory, Educational Fairness Theory, and the development and practice of higher education in developed countries have further provided the proof that the salience of the investment risk is an inevitable trend in the process of the popularization and universalization of higher education. However, the objective existence of this risk is merely a small part of those issues in the investment risk of higher education, for this investment risk is not the higher education per se. The questions such as how to measure scientifically and avoid this risk rationally and effectively have been the significant methods to ensure the social justice and maintain social stabilization. As an agricultural country, we have seen the frequent flow of labor force with the socialist economy market deepened consistently and the process of urbanization quickened, in that migrant-workers have become more and more enormous. The influence of this huge group would inevitably have a greater impact on the development of society and economy, higher education reform and social stabilization. The effect of the personal investment in higher education on their children, i.e., return risk, will deeply impact on the development of society and improvement of economic efficiency. Then the result and objective of higher educational reform in the future will be depended on this effect to a larger degree. In recent years, though our government and society have attached great importance to the group of migrant-works, this cannot change their relatively weak social and economic position. The economic assistance offered to them can merely lessen the problem of their living environment temporarily. Since their problem cannot be solved fundamentally, the generation succession between classes has gradually appeared. As the gradual salience of micro-economy based on the economic unit of family, we should utilize such essential, developmental and better means to the problems of this special group as paying attention to educational investment and return risk of migrant-works for their children’s higher education, avoiding, reducing or dispersing the investment risk while increasing their investment income. At present, technological innovation has, step by step, become the important and principal means of propelling economic development and social progress. With the advent of the era of knowledge economy, the dependence of technology development and progress on the accumulation of personnel cost will be strengthened. Nevertheless, the key to technological innovation and talent cultivation lies in the boom of higher education. Hence, in the new environment, the studies on the college education of migrant-worker families have been a durably significant project. Those areas of study contain the following aspects:(1) based on the quantile regression and Portfolio Investment Theory, the issue of the investment risk and the return of the migrant-worker families on their children will be reviewed during the course of reassessing the transference of current higher education from popularization to universalization;(2) the mechanism of risk formation will be analyzed from the perspective of new principle economics;(3) the reasonable and effective avoidance, reduction and dispersion of the risk of investment interests will be proposed;(4) and the promotion of the fair and coordinated development of the higher education will be explored.There are two dimensionalities in higher education investment for children of rural migrant-workers, including income and risk. Accordingly, this research will investigate the income and risk of higher education investment for children of rural migrant-workers in the angle of decentralizing, avoiding and sharing. This research will also take advantage of quartile regression to investigate rate of return on investment in higher education investment for children of rural migrant-workers at different regions or quantiles and then to analyze the individual income and risk of investment. The result shows that the rate of return on investment of higher education for children of rural migrant-workers is about4.23%and the risk of return on investment is4.21%, in which the return risk of active higher education investment is3.13%and the return risk of passive higher education investment is6.86%. Compared with earlier research on this issue, the rate of return on higher education investment for children of rural migrant-workers has trended down, while the risk of return on higher education investment has increased gradually. This shows negative correlation rather than positive correlation between the risk of higher education investment and the return of higher education investment, which equals to low return and high risk. The rate of return on higher education investment for children of urban family is8.71%and the risk of return on it is2.07%. The rate of return on higher education investment for children of other rural families is7.01%and the risk of return on it is2.23%. Thus, in comparison with other social groups, the risk of return on investment for children of rural migrant-workers is apparently higher than that of children of urban families and children of other rural families. The factors that influence the risk of return on higher education investment for children of rural migrant workers are various, including the development of regional economic, individual investment desire, level and category of their school, their major, guaranteed returns and so on. Among all these factors, the individual investment desire, the differences in level and category of their school as well as the lack of guaranteed returns are the main reasons that give rise to the high risk of return on investment for children of rural migrant workers. Speaking more specifically, the lower level their school is, the higher risk there will be. What’s more, negative investment has higher risk than positive investment. The combined actions of these aspects lead to the current situation of low return and high risk of higher education investment for children of rural migrant workers.Institution is a way to improve economic efficiency which can reduce uncertainty, reduce risks and allocate resources efficiently. The inner operation mode of institution makes a theoretical connection between the arrangements on relevant institutions and the revenue risks on offspring come from the migrant-worker families. The higher-educational investment is an important measure to allocate resources efficiently which needs the arrangements on relevant institutions to operate. Many reasons lead to the unmatched condition about higher education, the arrangements on relevant institutions, the social development and the economic development. Many reasons lead to the unmatched condition about the higher education, the arrangements on relevant institutions and the development on society and economy. The unmatched condition dues to the unbalanced economic development, the low employment rate, the supply shortage on social insurances, the lack of certainty income and the wide gap among the difference higher educational institutions. And then, the unmatched condition would increase the uncertainty and risk on the investment income. The lack and shortage of the relevant higher educational institution, the social distribution institution, the labor-market institution, the social insurance institution and the risk-sharing institution lead to the unmatched condition which generate among higher education, the social development, the economic development. It also becomes the origin on the investment income risks. There are three inner reasons of the shortage supply on the arrangement of the relevant institutions. The first is the "Economic man" interest demand by government in supply of the higher education institution and other relevant institutions. The second is the path dependent and the interest conflicts in the process of institutional changes. The third is the paradox of the institution supply.Strengthening system supply and promoting system reform and changes related to higher education is an inevitable way to effectively avoid and reduce individual investment risk of children from migrant workers’families in higher education. It is also a necessary choice to achieve its educational recovery plan, to push forward the social economic sustainable and healthy development for the government. To promote changes in higher education system on the basis of existing related system, basing on the country’s overall strategy and the future socioeconomic development, it is needed to establish and perfect the policy system. The main contents are as follows. Firstly, speed up the related system’s supply and arrange of higher education; design new mechanism actively to make higher education drive economic development; promote multi-aspect reforms such as students training, professional settings, resource commitment, cost sharing, employment guidance, etc.; increase input in low level classes of colleges and universities; narrow the intercollegiate gap gradually between different types of colleges and universities; promote higher vocational colleges’academic education level and education quality; establish flow mechanism between schools at different levels; contribute to the free education in higher vocational colleges; timely consider the abolition of the level selection system for university entrance exam; improve the flow mechanism from vocational education to ordinary higher education. Secondly, national and local governments should accelerate economic development, promote the reform of household registration system, narrow the gap between urban and rural economy, perfect the income distribution system, besides, the governments ought to break double barriers in the labor market gradually, establish a unified and open labor market, promote the rational flow between the primary and the second labor market, overall consider to set up the university graduates minimum wage system and the unemployment insurance mechanism, increase the proportion of affordable income, reduce the uncertainty of investment income, gradually create the system for directional recruitment in free, training, employment for the rural college students, which not only can effectively avoid and reduce its earnings risk problems but also is helpful for national macro-adjustment of industrial structure. Thirdly, with Portfolio Theory, gradually introduce risk investment mechanism of higher education and insurance system, spread the investment risks, and share the risk consequence. Finally, according to their own situation to actively invest higher education, the children from migrant workers’families ought to strengthen the awareness of risk, combine the state and education authorities’assessment of higher education, have a proper understanding and rational choice to the higher education of different types, different majors, and avoid blind investment.