Human Capital Pricing Of The Civil Servants

It is a nodus of the theory of human capital pricing that pricing for the members of non-profit organizations.The progress in pricing for the enterprisers and handlers has been made for years, however the field of valuing for the public officers or intelligence is still left blank.It is of great importance that discussing the human capital pricing of civil servants at the turning point of the reform of public administration in China.The analysis of criterion demonstrates the inner rationality of cost method used by the human capital pricing of the civil servants.The human capital investment of civil servants is the function with the variables of region, section, position, educatin, and length of service and so on.The cost of investment can be measured as living cost, education cost or opportunity cost. The total award to civil servants is equal to the average investment of human capital and the return for the restrained social capital. The practical design of compensations is also influenced by the factors as job supply and demand, policy target and fiscal situation. This paper introduces the five-step design of the public compensation system which is based on eight series of positions and several matching methods of human capital valuing.The part of demonstrations adopted the documents from the first-time declares of officials' property in the region of Aletai,Xinjiang in 2008.It is an initial research on the domestic civil servants' earnings in the domain of microcosmic data.The result of the estimated parameters confirms the huge differences in income between the diverse departments. This article advocates the positive reform of distributions and concludes three aspects of suggestions.