Effects Of Investment In Education On Employment After Reform And Openness In China

Education and employment, which are naturely related each other, are two fundmental practices in the process of survival and development in the human being society. Because the relationship has different external environment, the relationship correspondingly has different types in the historical process of human being society. The investment in education sustainablely grows and the structure of investment in education emerges new characters after the reform and openness in China, while we face enormous employment pressure. Especially after higher education has increased enrollment and undergraduates found it difficult in obtaining employment, people begin to doubt that if investment in education benefits employment, which calls for rational thinking about the relationship between education and employment.The dissertation studies the employment effect of investment in education after the reform and openness in China, which mainly answers two questions. The first one is how the investment in education takes effect in employment? The second is if the investment in education has flung influnces on the employment, if the the structure of investment in education has been responsible for the changes of structure of employment and how much degrees are. The former belongs to the theoretical study and the latter experience one.The dissertation covers four sections.(1) The researcher focuses on the theoretical achievement of the education’s effects on employment in the first section. The views of the relationship between education and employment that the experts of human capital and the researchers of signal theory insist is highlightly studied. The hot discussion majorly lies in two issues:one is whether the investment in education gives rise to increasing employment, the other is by what means education has effect on employment. The dissertation follows the steps of the theory of human capital to study the two issues mentioned above. (2) How the investment ineducation gives influences upon employment is dealt with in the second section. And the second question will be answered in this section. The author analyses the view which the huam capital insists that the human capital increases the labour productivity and economic growth, and then boosts the employment growth. The author thinks that the relationship between labour productivity and employment growth is not one-to-one correspondence, instead that the elasticity of wages is the intervening variable of investment in education and employment growth. Also the research finds that the market mechanism is necessary for the intervening variable to give effect and the market-based mechanism gives oppotuinty for the effects of elasticity of wages in China.(3)That the empirical test how investment in eduction after the reform and openness in China has an effect upon the employment is studied in the third section, which includes chapter5, chapter6and chapter7. This section aims to answer the second question, both about the effects of the investment in education in sum upon the employment and about the effects of the instructure of investment ineducation upon the structure of labour. The research gives the result that the investment in education has negative effect upon employment in short run and has positive effect upon employment in long run, and the employment effect caused by investment in education has weakened in recent years, however investment ineducation gives positive effect upon the gap of employment in long terms. Then the author researches the effects of investment in education upon the structure of employment after Chinese reform and openness, and finds that investment in education is in fovour of the employment in non-farm and hasn’t given positive effects upon the employment in the second industry and the tertiary industry. At last, the author studies the effects of investment in fundamental education and in higher education, which shows that there are different effects on Chinese structure of employment between different levels of investment in education. The investment in rural fundament education brings about positive effect on transfer of rural labour while the investment in higher education decreases the employed labour in the second industry and in the tertiary industry.(4) Suggestions are in the forth section. The author thinks that relationship of investment in education and structure of employment should be considered together. Firstly, compulsory education should be popularized and the quality of education should be enhanced, especially the rural compulsory education should be paid more attention to. The scale of higher education should be enlarged based on the popularization of compulsory education. Secondly, technological innovation and upgrade industries is the key factor that is restricted to whether investment in education helps to employment growth. The condition that elasticity of wage grows too slow should be changed to help investment in education to give positive effects on employment growth and help to do favour of employment structure.