Research On Distorted Development Of Educational Human Capital

Human capital is a productive factor which plays an important role in economic growth. It has long been a focus which attracts many economists. However, distorted investment of educational human capital is still a completely new issue in our country. So research on this issue is of great significance in theory and practice.Firstly, this dissertation introduces the concepts, characteristics and sorts of human capital. Secondly, it studies the human capital in economic growth model,the mechanism of supply and demand, and the decision of investment. Then, it investigates the progress of educational human capital investment in China and states of human capital investment in foreign countries. Lastly, it researches public finance expenditure, human capital investment under market failures and the market segmentation of human capital investment. To solve the distorted investment of education human capital in our country, this dissertation puts forward some policies.This dissertation consists of eight chapters, as follows:Chapter One is the introduction. Chapter Two present the basic concept of education and human capital. It briefly introduces the concepts, characteristics and sorts of human capital. And it put forwards the distorted development of human capital.Chapter Three analyzes the function of human capital and the decision of investment. It uses new economic growth theories to explain the importance of human capital.Human capital is especially strategic to developing countries. It analyzes the mechanism of human capital supply and demand. This Chapter also determines the decision model of human capital investment about returns maximum.Chapter Four is the progress of human capital in China and system of human capital investment in foreign countries. It shows there is great progress of human capital investment and allocation from Chinese Reforms and Opens, that is: diversiform investment bodies, market-oriented human capital allocation and increasing amount of human capital investment. The human capital investment of developed countries (e.g. American, Japan), east-Asian and Latin-American is a useful reference to China.Chapter Five is the public finance expenditue and human capital investment. It shows that the amount and the structure of public education finance expenditure is unreasonable, which needs to increase financial supports and optimize its expenditure structure, and also need put public finance in training disadvantage people who was excluded from formal education. Chapter Six is the market failure and human capital investment. In asymmetric information situation, human capital investment will become human capital"speculation"(which refers low ability man get high education diploma), which leads education resources waste. So it is necessary to perfect the market system and reinforce the supervision of government. In information lag condition, human capital investment will fluctuate greatly, which also lead education resources waste. To alleviate it, government must supply human capital demands forecast. Moreover, because the specificity of human capital, human capital supplier is easily controlled by demander, which leads to invest insufficiently, employment law protection policy is needed.Chapter Seven is the market segmentation and human capital investment. Labor market segmentation restrains the human capital accumulation in rural and western poor area and then widens income gap. The reason of market segmentation is product, technology and institution. Currently, we need to break institutional discrimination first.Conclusion is the sum-up and prospect of this paper.