Empirical Analysis On The Impact Of Human Capital In Rural Areas On The Peasant's Income

The peasant's income problem is the core factor of the three-dimensional rural problems, named the problems of Farmers, Rural Areas, and Agriculture Production. The level of peasant's income directly affect whether the country economy can develop incessantly, fast and healthy, then affect the stabilization of the country and achievement of the third-step strategy target. There are so many limitation to the increase of the peasant's income, for example unreasonable agriculture economy structure, undeveloped circulation system of agricultural products, low human capital level etc. And the human capital of the country is the most important factor to limit the increase of peasant's income. And it's the reason to choose it as our research object which has much more reality significance.The thesis begins to introduce the basic concepts of human capital, peasant's income, non-agricultural income and agricultural income. Besides, it also tells how to calculate the human capital and the approach to accumulate human capital.The research analyzes the impact of human capital to peasant's agriculture income in the following. Base on the statistics date, we find that the level of country human capital is very low and increased slowly. From the fact of the history date and compare between agriculture income and education level, we can get the conclusion that the more of average education years, the more agriculture income. Also, this paper use Cobb-Douglas function to do regression analysis between average agriculture income and farms' average education years. The result shows that there is positive correlation connection between them and the average education years is the most evidently effect to the farms' agriculture income.Then, this paper dedicates to the theoretical and demonstration analysis to the effect on the human capital to peasants' non-agriculture income. The statistical date shows that the high peasants who have more educations are easier to adapt the high industry level. On the other way, the low education peasants are always do non-technical job and low income in result. In the same way, we do regression analysis between average non-agriculture income and average education years. The result shows that there is positive correlation connection between them. We also find that the effect of average education years on peasant's non-agriculture income is bigger than its effect on peasant's agriculture income. In order to deeply our research, we use Mincer's earnings equation to do regression analysis between average education years and...