Specialized Human Capital:An Analysis For It's Allocation Based On Institution In The Period Of Transition

With the character of increasing marginal profit, the specialized human capital has powerful productivity. On the macro-level, it is the main carrier of productive forces and the promoter of economy growth. On the micro-level, it is the core competence of companies and the main source of enterprises' wealth. To bring it into full play, rational allocation is the elementary work. While such work would not be well done without a set of accordant institution. During the period of transition in China, different institutional power works on the allocation of human capital simultaneously, emerge different contracts, cause different transaction costs and bring into different allocation efficiency.Under the framework of the New Institution Economics, this thesis emphasizes on explaining the allocation contracts choosing of specialized human capital. In respect that the transactional costs can always tell the efficiency of allocation, the author lays stress on comparing the transaction costs of different contracts, and trying to find out the nature of existing allocation problems of specialized human capital. Finally, this thesis pointed out the very way of rational allocation is the freedom of contracts, whose establishment and enforcement depends on the institutional reformation: uniform human capital market, clear property rights, regular social security, perfect legal system.