Selective Transfer, Human Capital Deepening And Endogenous Agricultural Development

The classic development economics literatures deviate significantly from the facts due to the heterogeneity of individual endowment, especially investment in human capital. China's experience shows that rural labor transfer not only reduces the agricultural labor, but loses the quality, which is embodied by the young and mail labor with high human capital level, namely the selectivity of labor transfer. Based on the household perspective this study agues that the investment and formation of agriculture human capital can be explained variables for the selective transfer behavior of the labor force. The rational farmers and their households, faced with the higher wage rate than that of the non-agricultural, maybe shift to non-agricultural section when the labor market opens and the shift earnings are more than transfer cost. The farmers will adjust expenditure structure to increase human capital investment when education and human capital investment is helpful to improve the transition probability and the non-agricultural wage rate and reduce the cost of transfer. Meanwhile,the selectivity of labor transfer leads to the smaller family and higher quality tendency. When human capital return continues in the trend of ascension in the industrialization and the urbanization process and greater than other investment, the farmers will accelerate the investment and realize the dynamic growth of human capital accumulation.The selectivity transfer of labor force, no doubt, will accelerate to remove excess agriculture labor force, and to improve the material capital accumulation of the agriculture department, and substitute for the material capital in more degree. At the same time, the growth of the demand of human capital investment of the rural residents and the dynamic deepening of the human capital of the agricultural labor force are along with the selective transfer process.The changes of the structure of inputs are caused by the change of the structure of resources. The agricultural development mode, decided by the input structure or power structure will gradually evolve from classical, new classical way to the evolution of endogenous mode. Within endogenous agricultural development mode, human capital and skill-biased technological progress have decisive influence on output growth. At present, the selectivity transfer of the China's labor force challenges the traditional classical and new classical agricultural and provides huge opportunity of the endogenous agricultural development mode.In the endogenous framework of the agricultural development of, the growth of agriculture path is decided by human capital accumulation rate. In the time axis, China's agricultural input elements present substitutes trend, and the role of human capital cannot be neglected. The advance of agricultural technology performance for land intensity agricultural machinery power and fertilizer to the substance capital intensive. Agricultural machinery power technology progress is faster than the application of fertilizer technology progress. With the non-agricultural section transfer of and the elimination of surplus labor force, the of skilled-biased technology progress will gradually become the main type of agricultural technology, when labor skills or human capital accumulation will also replace other elements and become the key resources of China agriculture development.The promotion of agricultural human capital level and the convergence of the human capital level between agricultural and non-agricultural section, can be used as the complement and sufficient condition in the background of urbanization and industrialization and agricultural modernization transformation to predict the of Chinese agricultural development prospect. The gap of human capital level between the two sections grows gap, the prospect of agricultural modernization is not optimistic,which is traditional development mode. If agriculture and non-agricultural labor department of human capital in the low level convergence, or agricultural modernization points of the delay in the case of a great, low human capital accumulation rate of the cause of human capital, will be to realize agricultural modernization of a "short board", the agriculture department in the long term is in "the low level balance" state. The human capital of two sectors converges in a higher level, workforce heterogeneous problem will therefore will eventually return to homogeneous. Agricultural labor quality improvement, agricultural technology upgrade and agricultural organizations such as enterprise will guide the modernization of agriculture. In the labor selective transfer background, agricultural development policy should shift from the material capital and technology growth to the improvement of the quality of labors and rural labor transfer system environment construction.