A Study On Individual Human Capital Investment Risk Of Our Higher Education

Our Higher Education has started the large-scale expansion from 1999, higher education are gradually entering a new stage. From then on, The individual (or family) has became an important investor in higher education. Investment must be accompanied by risk, the risk of higher education is not only closely linked with the benefit of individual and his family, but also reflects the common interests of the large number of people. So our higher education and individual investment risk gradually become the popular topics.For the economic and non-economic interests , more and more people invest higher education. by contraries, the individual (or family) is lack of the risk conciousness and has no enough knowledge to analysis the risk. The risk of higher education investment damnifies the benefit of individual investor, and has an adverse impact on society development. Research on Higher Education individual investment in human capital risk has the positive and practical significance.The Paper researches the individual investment in human capital from the angle of view in risk. The Paper Is divided into five parts:Part I: Introduction. In this part ,the Paper interprets the background and significance of the research , review the studies in this filed ,points out the research purposes, methods and framework.Part II: the theoretical basis of Higher Education individual investment risk. Higher education is defined as a quasi-public goods; the main investor is locked in individual; under the condition of incomplete information, the paper considers the individual is limited rational economic man; to intrduce two theoretical basis of the paper : risk theory and human capital theory.Part III: the analysis about the risk of China's Higher education Individual investment. This is the core of the paper. Firstly ,the paper points out the three main forms: over-education, employment risks, the expected return risk. Particularly in the part of over-education, the paper points out that there is no theoretical over-education, at the same time ,states out the concept of regional over-education and Professional over-education. Secondly, from the perspective of economic, the paper analyses the reasons of the risk in human capital individual investment. From the angle of Information Economics, It points out the long-term and indirect nature of the human capital,the incomplete information in labor market caused the investment risk. From the angle of property rights, it point out the risk is caused by the particularity of human capital .Finally, it analyses the cost and revenue of human capital investment, and give out the conclusion of lower profit rate.Part IV,how to prevent the risk of higher education individual investment in human capital. From the angle of three main higher education investors ,the paper gives the corresponding preventive measures about human capital risk: the investor himself should be provided with the risk consciousness, perfect his knowledge system to improve his ability to resist risks; tertiary institutions should set up the specialty market-oriented, to strengthen the teachers'qualities, to update the equipment timely and so on ; from the macro level, the Government should to modulate the labour market to reduce the risk.Part V: conclusions. Summarize the main views of the thesis, indicate the content which need to improve.Based on the human capital theory, risk theory, education theory and the theory of the labor market, the paper makes a comprehensive risk analysis about the China's individual investment in Higher Education. The last point is that the risk of investment in human capital is growing. we can resist the risk and improve the revenue ,only through making clear the reasons of risk and making corresponding preventive measures.