China's Labor Contribution Rate By Years Of Education And Experience On Economic Growth

Since 1960s Schultz's Human Capital Theory, researches about human capital and the contribution of the quality of work force to economic growth have been the focus of many researchers. In China, there also are many researchers have done researches in this field, and come to the conclusion that the education level of work force contributes greatly to the economic growth at the national level and also in some region in China. These researches facilitated the development of Chinese education and promote the investment of human capital.Based on a historical review of the theoretical and empirical analysis of the connotation, the investment forms and the rate of contribution of human capital, the author found that most Chinese researchers merely explored the human capital developed through school education, while ignored the contribution of human capital developed through other ways to economic growth, given that there are five different ways. Based on analysis, the author argued that, among the five ways of human capital formation, school education and working experience of work forth are two major ways. And working experience is developed through three ways: professional training, afterhours self-study and learning-by-doing. Thus, it is necessary and feasible to calculate the contribution of education level and working experience to economic growth.Based on above analysis, this research simultaneously introduced the variables about working experience and education level of work forth into the Lucas production function model, which included the production function of human capital. This constructed a production function, which could demonstrate the relationship between these two variables and economic growth. The research also analyzed the contribution rate of the amount of physical capital of 1997-2009, the amount of work forth, the education level and working experience to economic growth in China. The author comes to the conclusion that the education level and working experience of work forth have substantial contribution about7.2%, although while of the working experience is 5.27% and that the contribution rate of education level is 1.93%. The economic growth of 1997-2009 could be attributed mainly to the investment of physical capital.