The Demonstration Research On Paradox For Human Capital In Western China

It has become evident that human capital plays a major role in the economic growth of nations. In this new technology era, sufficient investments in human capital are crucial for sustainable development of western China. However, historical and geographic reasons create serious regional disparities in terms of the level of human capital accumulations in China. The low level of human resources in the Great Western is not sufficient to meet the demand of its future development. On the contrary, college graduates from western China could not be placed well in labor market in recent years. Such paradox constrained the economic development of western China. By examining this phenomenon, this paper suggests that the solution to such problem is to establish an effective motivation mechanism, and efficient promotion of investment in human capital.To begin, this paper analyzes the contribution of human capital to the economic growth of western China. It is found that such contribution rate is still low, and especially, the contribution of higher level human capital is in a declining trend in recent years, which is in contradiction with what the "Inner Growth Theory" suggests. Such fact demonstrates that there is a bottleneck of human capital in western China. This paper examines the job placement of college graduates in western China and finds that waste of human capital in western China is phenomenal.By exploring the job placement of college graduates, investment & demand structure of human capital, income-risk of education investment and job intention of college graduates ,this paper discusses the three possible reasons of such paradox for human capital phenomenon in western China: conflict between supply and demand, traditional idea of employment, and government policy. Behind of these is insufficient human capital, which means the ultimate solution for such paradox is an effective motivation policy for human capital, including not only physical motivation, but non physical motivation, long-term benefits, and relative income status. This paper briefly analyzes the ways to invest in human capital in western China. And I hope this paper would be helpful in fostering the development of western China.