Empirical Analysis On Urban Residents' Income And Human Capital Investment In China

In China, since the reform and opening to outside 30 years ago, the urban residents'income has been getting larger and larger, and the human capital investment has been accelerating,The gap of the urban residents'income and human capital investment have been widening. Human capital is considered the determinative factor of modern economic development, There is great practical significance, on the view of Investment gap in human capital, to analyses and interpret the gap of the urban residents'income ,and on the view of the gap of the urban residents'income, to analyses and interpret the Investment gap in human capital.This thesis concludes four parts-introduction, theoretical analysis, experiential analysis, advice and conclusion. Firstly, In the part of introduction, the issue to study has been put forward, concerned concepts have been defined, the innovation and study method have been interpreted briefly. Then, the fundamental theory of this study—the mutual theoretical effective between the urban residents'income and human capital investment, has been presented, following the summary of relative research literature and theories about the income distribution theory of human capital. And the thesis carries on a theoretical analysis on the status of the gap between the urban residents'income and human capital investment since 90's ago, illuminates its mutual effective. Also, In the part of experiential analysis, taking the income distribution theory of human capital as our theoretical fundamental, using co-integration test, ECM and Granger test in time series analysis, with the data from 1985 to 2006, the thesis carries on an experiential study on the correlation between human capital investment, and the urban residents'income in china.The result of the research indicates that between the gaps of human capital investment, and that of urban residents'income, have a long-term stability two-way causal relationship in China. And showed that the increases between residents'income and the human capital investment is complementary. Which to strengthen human capital investment and increase residents'income provided empirical support. Then, in the short term, the change of urban residents'income is the main reason for the rate change of human capital investment, but conversely is not significant. That is, the increase of residents'income has significant positive impact on the growth of human capital investment. And the change of human capital investment is not promoting main reason for the increase of residents'income.Finally, on the bases of theoretical and experiential analysis, advice and suggestions on how to narrow the gaps between urban residents'income, and how to raise on the investment in human capital, have been brought forward. Also the thesis has summarized the main content and results of this research, and has pointed out the deficiency of the study.