The Effect Of Human Capital On The Growth Of Peasant's Income

This paper discusses the ways and methods to solve the problem of how to increase peasant's income from the aspect of human capital. This study analyzes two questions, that is why the human capital influences the growth of the peasant's income, putting forward and verifying the mechanism of the human capital influences the increasing of the peasant's income.The line of this dissertation is unfolded according to the logical thought of proposing the problem, analyzing the theory, unfolding the mechanism, analyzing the real example, drawing the chief conclusion.The investment of human capital is the main source of economic development. According to the analysis of the reason of economic development by these economists such as Becker, Denison, Schultz etc, the contribution of human capital to the economic development is important. The IBRD brought the human capital as wealth into the accounting system of national economy of every country. These indicate that, the human capital plays an important part in the economic development has already got widespread acknowledgement.The investment of human capital will lead the economic development, will enhance the proportion of the salary income in the distribution of society wealth, and increase the total wealth distributed by the salary.The level of the human capital of the peasant is the according of the income distribution. Though the society wealth are increased, the wealth total amount of the dispensability raise ,whether the peasant can increase the quotient of the income distribution and improve the income level are still dependent on the level of human capital. Higher the level of human capital of peasant is, larger the quotient getting from the income distribution is. Only peasant raise the level of their own human capital, the peasant may be improve the income level.The human capital influences the mechanism of the peasant income. The investment of human capital raises the peasant's intelligence quality and health quality, which determine the peasant ability of obtaining information, distributing resource, flowing and producing directly, and thus which determine the peasant's income level. The investment of human capital can reduce the cost of obtaining information, expand the channels that which obtain information, and improve peasant's ability to obtain information. The investment of human capital can raise peasant's migration ability, increase peasant's disposition ability. The investment also can make production capacity of peasants increase progressively, make peasants transfer to become producers with certain skill from the general peasants, change peasant's society layer and their jobs, and increase peasant's income. The investment of human capital improves the peasant flow ability, raising peasant to choose the industry ability, raising the income of the peasant.The substantial evidence of the human capital influence peasant income analysis. Through regression analysis, get the relation between a human capital and the income of the peasant: The human capital have main function to the peasant income.