Research On Human Capital Inequality And Its Effect On Economic Growth

Adam Smith's《The Wealth of Nations》is regarded as the beginning of the modern economic.Since then ,people started to explore the growth of economy. The development of economic growth theory passed through four processes approximately: first, the classical economic growth theory, which is represented as Adam Smith, David Ricardo and so on, which thinks that the power of the economic growth lies on the continuously investment of Labor force, capital, land and so on,and the process of investment and accumulation is the core of economic growth. They belonged economic growth's origin to the physical production domain, and attempted to discover the factor that push economic growth from the production process and production organization's change. Second, Capital Determinism, which is based on the Harrod-Domar model established together by Harold and Domar, made the analysis of economic growth's influencing factor.It emphasizes the investment of the material capital, but the economic equilibrium condition it proposes was very actually difficult to reach, therefore becomes"knife edge balance". Third, technology advancement theory, is also called the neoclassic economic growth theory, taking Solow and so on as representative, introduced the technology advancement to the growth pattern, overcame the marginal return to decrease progressively, enables the economic growth to have the long-term endurance, namely the technology advancement was the economic growth fountainhead, but the technology was unable to explain itself for its outside natural disposition. Fourth, new economic growth theory, is also called the endogenous growth theory, taking Romer, Lucas and so on as representatives.It makes economic growth's influencing factor biochemistly, from the aspects of knowledge, human capital, special coverage and so on,which is a more reasonable explanation for economic growth.The domestic and foreign human capital and the economic growth theory research indicate that more higher the human capital level is, more quicker the economic growth is .Since the new economic growth theory has appeared, the function of the human capital level as well as the human capital accumulate in the economic growth has already obtained the confirmation of the theory and the practice for widespread. However, the human capital Inequality to economic growth's function has rarely been researched .The former research always regards the human capital as a whole, and conducts the research on its promoter action to the economic growth, but has neglected the human capital interior distributed structure. This article just conducts the research based on this point. This article,based on the foundation of MRW model, introduces the human capital Gini coefficient in the model,and establishes the relation between output with the human capital inequality.We analysis the relationship of human capital inequality and economic growth using our provinces and cities'panel data of 1999-2008.Using the method of educated years, measure human capital level with average educated year per person, and calculate the human capital Gini coefficient. Carry on the examination and the regression analysis it with economic growth measured with GDP, and obtain the influence function of human capital inequality to the economic growth. This article is divided four parts. The first chapter is the introduction, mainly stating the question proposed, the research background, the significance,the research method and so on; The second chapter is the literature summarizes, reviewing the domestic and foreign human capital theory and the economic growth theoretical research. The economic growth theory passed through four processes approximately, from the classical economic theory to the capital determinism, arrived at the endogenous growth theory again, as well as the present new economic growth theory. Along with the economic growth exploration's deepening, the human capital obtains more and more attention. More and more people attempt to study the economic growth through the human capital angle. This article attempts from human capital's another angle, which explores the influence of human capital inequality to economic growth. This third chapter introduces the data selection and collection, states the definition of the human capital level and the human capital inequality, and how to select the Variable to carry on the measure. This chapter has introduced the Variable named human capital Gini coefficient measuring the human capital inequality, so that we can examine the influence to economic growth. The fourth chapter deals with the panel data of 31 provinces and cities during 1999-2008, and analyze the relationship between the two variables to obtain the result. The result showes that the human capital inequality has the remarkable negative influence on the economic growth. The anticipated happens to hold the same view with this article`s research. Finally according to our research conclusion, we put forward some proposal. Certainly, this article`s research also has the insufficiency, so we need more improvement in future research.