Research On The Investment In Human Capital By Rural Residents Under Substitution Effect

Karl Marx paid much attention to hominine effects and development. In his work on capital, Karl Marx pointed out: labor force became goods in capitalism society, which had value and useful value. Its useful value was headspring of value. Man is the most important factor in social development. The upmost ideal of society development was human liberation and human general and free development. Modern economics thought human capital acted on increase of economy very much and was headspring of increase by degrees of rewards.In recent years "the three issues in agriculture" stood out, the core of "the three issue in agriculture" is how to increase income of rural residents, the key of increase of rural residents' income lies on development of rural residents' accomplishment. But the demands of the investment of human capital are clearly different between townsmen and rural residents. Townsmen enthusiastically invest in human capital, while rural residents are very cautious in investment of human capital. Though the expenditure on human capital increases, it increases slow; Rural residents have no confidence in investment in human capital, so dropouts increases, especially girls; Investment polarizes, rural residents can't spend on investment in human capital, they think investment isn't useful.The reasons of the low demands of rural residents' investment of human capital are not only in country, countrymen and agriculture, but in whole society; not only lies in present conditions, in addition lies in historical actors. Guided by Marxism theory, based on human capital and substitution theory, linked with dualistic structure in our country, colony games between rural residents and townsmen under infrequent resource and the status of labor market, the thesis analyzes and studies investment in human capital of our rural residents and how to choice under substitution effect.Main viewpoints: ①There is typical dualistic structure in our country and its trend is strengthen. ②Though rural residents are large proportion in our country, they are weak in colony games. ③Labor markets are inprefect and intersected, positions are rationed. The thesis...