The Investment Of Human Capital And The Increasing Of The Peasant's Income

This paper discusses the ways and methods to solve the problem of how to increase peasant's income from the aspect of human capital. This study analyzes three questions, that is , why the human capital influences the increasing of the peasant's income, putting forward and verifying the mechanism of the aforementioned, and how to measuring the contribution of the human capital to the peasant's income and calculating the benefit of the investment of human capital.The line of this dissertation is unfolded according to the logical thought of proposing the problem, analyzing the theory, unfolding the mechanism, analyzing the real example, drawing the chief conclusion and proposing some policy suggestion.The investment of human capital is the origin of economic development. According to the analysis of the reason of economic development by these famous economists such as Denison. Schultz etc, the contribution of human capital to the economic development arrives at more than 30%; In 1995 the IBRD, the international authoritative organization, brought the human capital as wealth into the accounting system of national economy of every country. These indicate that, it is accepted by most people that the human capital plays an important part in the economic development.The human capital adheres to the labourer and the pay of the human capital is represented in the form of the labours' income, so the economic development leaded by the investment of human capital will enhance the proportion of the salary income in the distribution of society wealth, reduce the proportion of the profit income, and increase the total wealth distributed by the salary income.The level of the human capital of the labours is the according of the income distribution. Though the society wealth and the total wealth distributed by the salary income, are increased, whether the labor can increase the quotient of the income distribution and improve the income level are still dependent on the level of human capital. Higher the level of human capital of labor is, larger the quotient getting from the income distribution is, and higher the level of income is. So under the situation that total amount of wealth increases distributed by salary income, peasants may raise their own human capital level, raise their own position in "Pyramid" of the wealth distribution, and improve their own income level.The investment of human capital raises the labourer's intelligence quality and health quality, which determine the labourer's ability of obtaining information, distributing resource, flowing and producing directly, and thus which determine the labourer's income level. It is expanded as belowpoints. The investment of human capital can reduce the cost of obtaining information, expand the channels that which obtain information, and improve peasant's ability to obtain information. The investment of human capital can raise peasants' promotion ability, flowing ability in industry and in area, and thus their disposition ability. The investment also can make production capacity of peasants increase progressively, make peasants transfer to become producers with certain skill from the general labourers, change peasants' society layer and their jobs, and increase peasant's income. The investment of human capital improves the labourer's flow ability, as the workforce's education level is positive correlation with the labourer's flow rate, and negative correlation with the labourer's backflow rate. The workforce's flow ability is influenced sequentially from strong to being weak by three key elements, education level, age, and per capita area of cultivated farmland.Through regression analysis and income function approach, this study analyze the impact of human capital investment on peasant's income, and measure the contribution rate of human capital to the growth of agricultural income and non-agricultural, the effect of rural labourer flow to peasant's income, and the yields of human capital investment.Through time sequence data, panel data and data of different area...