Research On Factors That Effect Human Capital Of Rural Youth

It is well-known that Human Capital is crucial to the economic growth. At present, many rural labor migrate to urban to search for new jobs. And many of them are very young. So these young people's stock of human capital and its use plays an important role for the sustainable economic development. There are various ways to form human capital, such as education investments, training, nutrition and health care investments, " learning by doing " and employment migration, ect. This paper was mainly based on the experience of rural areas of Shandong Province. And it was concerned about these factors' effects on human capital accumulation. As matters stand, these investments are inadequate for the rural youth. Since the amount of supply of high schools is not enough and the corresponding development of secondary vocational education is relatively backward, many junior secondary school graduates start working after graduation. And the rate of return to education appears not remarkable. So many youth choose to start working rather than going in for further education. Accordingly, the inadequate investment in human capital is a rational selection under the established restraint.This paper made a model (the model used Miner's return way which is frequently used ) to evaluate the relationship between education, rural youth migration and income. The paper took special attention to the effect of migration employment. It has a significant effect on income (in this paper it is called "human capital accelerating index", and "H" stands for it). Many rural youth get some degree of promotion through " learning by dong " . It came to a conclusion that it is necessary to build up the right climate for the realization of the human capital's value. Some institutional arrangements are needed to stimulate the efficient using of human capital. And it is important to enlarge education investment, training investment, nutrition and health care investments. And to speed up the unification of the urban and rural labor market. An orderly and competitive labor market is vital for the using of human capital. During this process, the government plays a guidance role. And it is necessary to call up social forces to participate in these investments.