Human Capital Measure And Application Analyses Of China

Human capital is easy to define but difficult to measure. The difficulty of measurement imposes people to measure it from different dimension, or use some representative's index. This may come to be magnitude differentials or even opposite in results. Recently, many empirical research in growth use average education level as representative human capital index, and most of us to do so in China, but it is many limitations of education variable, especially it is not measure in currency, so cannot compared with other capital, such as physical capital, in appraisal human capital.In order to compare with physical capital stock, some researches use the method based on expected earning or cost of investment, which named income-based and cost-based method respectively. The income-based method is calls to be the most suitable but cannot be applied to measure human capital stock in developing country for many reason, such as no confidential realization on the human capital theory and lack of data. Cost-based method is easier to get data, there are some researchers apply it to measure human capital stock in our country, but they all avoid of the depreciation and price inflation of human capital. Will it bring to how many and somewhat kinds of error of ignore the depreciation and price inflation? How should we measure the error? In order to answer these questions we need empirical measure of stock and investment of human capital, and to do so, we can get deep insight of human capital investment and accumulate result.The area of human capital application is more and more abroad. In the already applications, there are macro level analysis, such as economic growth and productivity, education policy appraisal, income distribution and wage differential and so on, and also corporation and individual level analysis, such as individual abilities appraisal(especially employment abilities), human capital investment decision-making, family behavior and so on. The measure and application of human capital attach more emphasis, and a mass of research available, but there are far too mature, most of it awaits development, more application area need to explore and expand, but it confined by the lag of human capital measurement. So, it is the theory and practice demand to exactly define and measure, and systematically summarize and appraise the application of human capital.The meaning of dissertation consist of: the first, Based on systematically summarize and appraise the human capital definitions, measurements, and applications,we get deep insight into the relations of them; the second, on mass of collect and coordinate the data in existence of China, we modified some method to suit for and more accurate measure of human capital stock and flux level, and more deepen applications; the third, on discriminate and define human capital and its relation conception, especially the substance, price, depreciation, and revaluation, we can incorporate the human capital into the system of national accounting, and construct the basic frame of human capital append accounting system.The context constructed with five parts: part one or chapter 1 sets introduction, briefly introduce the background, thought way and method, framework, and innovations and limitations;Part two set summarize include chapter 2 and chapter 3. Chapter 2 discriminate the conception of human capital and some relations and illuminate the relationship of related theories. Chapters 3 summarize the international human capital measure and application researches from two facets of measure method and application. On summarize and appraisal the origin, development and application, we illuminate the methods theories origins, and discuss the measure and application area and content, and the limitation and maybe evolves;Part three sets chapter 4. In this chapter, based on our country's data conditions, we modified some methods to measure the stock and flux of human capital. Section 1 is modified the income-based method, and applied to human capital time series measures in 1952-2003 of China. Section 2 applied the investment cost method which put forward by Schultz in 1961. Section 3 and 4 expand the education representative index method. Section 3 measure the total education years and average education years in 2004 of China, and incorporate the factor analyze and synthesis appraisal method to constructed the variables system of education, which comprise quantities, qualities, and structures. Then based on the system, we measure the synthesis index of education, and compared it to other representative variables of human capital. Section 4 put forward and measure the human capital index based on population diathesis variables system. Section 5 analyze the reliability of the measures of ours, and put forward some considerations for the questions of basic data, and on corporate the measures of income-based and cost-based, we get the empirical evidence of China.Part four sets the analysis of the measures, which include chapter 5 and 6. Chapter 5 applied ours and some others measures of human capital to economic growths accounting. Sections 1 summarized the empirical methods and human capital variables. Section 2 applied the different human capital variables to economic growth accounting of China in 1952-2003 with total productivity function model, and research the effects of different human capital variables. Section 3 analyze and appraisal and modify the meta-product function model for region cross-section economic growth accounting in 2004 of China, with our measure variables. Chapter 6 definitely define the conception of human capital substances, prices, depreciation and revaluation and so on, put forward and measure the prices of kinds of human capital substance through corporate the human capital investment value series of ours and substance series measure by YongYuan-Hu(2003), and so we can corporate the human capital into the system of national accounting. Then we discuss the corporation mode, the appending accounting system, and constructed the framework of human capital accounting system.Part five or chapter 7 sets conclusions.The primary innovations of this dissertation are:The first, we systematically summarize appraisal the status and history of human capital definitions, measure methods, and applications, and clarify the relationship of them. Based on the situation of China, we measure the stock and flux level of human capital by multi-methods;The second, we modified some methods based on the data conditions of China. The one is modified the simplified expected income method based on some assumptions, the other is combined the factor analyze and synthesis appraisal method to expand the education representative index methods. Based on the system of education which includes quantity, quality, and structure, we expand the single index of education to synthesis index, and also to human capital index based on population diathesis variables system which contains education variables;The third, we demonstrated the proposition of perpetual inventory method can hardly be used to measure the stock of human capital with investment cost. And we apply the permanent inventory method (PIM) by corporate ours measures of stock and flux of human capital, and find the empirical evidence of human capital appreciation;The fourth, by defined the human capital substances and prices, we get the prices of kinds of human capital substance. Hereby we discuss the related questions of corporate human capital into the system of national accounting, and constructed the framework of human capital appending accounting system.