A Study On Individual Human Capital Investment Decision Of Postgraduate Education In China

In order to meet the requirements that economic development needs more professionals, the college enrollment policy has been implement in our country in 1999. With higher education'transformation from elite education to mass education, students have pay more attention to undergraduate education and want to have higher level education to meet the requirement of the economic and social development, and to meet the challenges of technological change. However, the number of college graduates was increasing in a high speed in China, and the graduate education' charging system was reformed, and the volatility of the economic situation took place.Under this situation,university students burden by the dual pressure that employment pressure is growing and the cost of further education increases gradually in recent years. Thus college undergraduates involed in the dilemma in that how to make the decision betweent "employment" and "go to graduate school for further study" during the graduation period. This article trys to analyze the revenue about "employment" and "go to graduate school for study",and provide a theoretical reference for colleage graduates.This article is based on human capital theory, labor market segmentation theory and decision theory frame to sort the research results of the educational investment decisions in the home and abroad from the prospective of personal investment in human capital.On this basis, analyzing the current "graduate Rush" phenomenon and the reasons, and crystallizing the main motives and purposes of the post-graduate educational individual investors; "maximize the effectiveness of the main investment decision-making" oriented, according to the characteristics of individual graduate educational investment, construct the basic process of investment decisions of post graduate education. Meanwhile, using the return on investment and the Mincer earnings model to analyze the individual investment decisions in post graduate education to get a conclusion:the benefit of "becoming post-graduate when graduating is greater than "getting a job when graduating". Post graduate education has an important role in the growth of personal income. Finally, according to the above analysis, this article believes that post-graduate educational investors can make post-graduate educational investment decisions more rational through the following ways, like paying attention to the nation policies and market information, accurately defining ourselves and determining the objectives of the post-graduate program, improving oneself to reduce risk level.