Analysis Of Human Capital Raising Mechanism

The knowledge-based economy has a rapid rise in the 21st century around all over the world, and people are getting a fully aware of the contribution done by human capital. Paying more attention to nurturing, and development of human capital, then promoting the sustainable economic and social development, has become a basic strategy of every country and region.In order to prove that investment in human capital contributes to economic growth, domestic and foreign scholars proved it not only in the theoretical way, but in the Econometrics, they testified the contribution on the different regions and time periods. Especially since the 20th century, as the economic growth theory, the study of the contribution to the economic of human capital has a major breakthrough. Domestic scholars researching on the issue on the bases of foreign study only adjusted to the statistical standards of China. Most previous studies reveals a positive correlation between the national economic development and the indicators of human capital, such as, the country's health, education and in-position training, promotion of science and technology R&D investment and cost of employment relocation.From all the research process, almost all the paper, intentionally or unintentionally, are ignoring the difference between the investment and stock of human capital. It is well known that all capital from the stock supply to the process of formation has different existence patterns. Almost all the growth models think it dose not cost anything to make the transformation of the human capital itself, the relationship between human capital and the economic growth should be revealed into the daylight.Based on the previous results, the capital use theory, human resources management theory and other theories, this paper analyses how the human capital investment transfers into the stock of region human capital, and we call it human capital raising process. Firstly, we take Shaanxi province for an example, analyses the status and the causes of its human raise process. Although Shaanxi has a foundation for the human capital raising, but it has a serious loss of human capital, the efficiency of present human capital is not high enough, using environment of human capital is not so competitive, and the structure of the human capital is not so good. The main causes of the status are:the ignorance of the importance of human capital, the lack of innovative policy of human capital, imperfect built of human capital market, and the industrial structure can not provide enough space to absorb all the human capital investment. The analysis provides a foundation for the following mechanism design for the regional human capital raising. Secondly, provide a human capital raising mechanism constitute of the human capital centralization, the use of human capital and the measurement of the conversion efficiency, and give a description of the mechanism. Using the method of game theory and other theories, the human capital market building, the human capital incentive mechanism design, the innovative regional human capital policy are important to the raising mechanism, but these factors are just neglected in the Shaanxi province. Also, we explain the main role of the human capital raising mechanism; the government can absorb human capital by design a innovative policy, and play a leading part in the mechanism. The enterprise can build a platform for the transfer by recruited and incentive the human capital in an efficient way. The individual of human capital himself, can get their own value added by upgrade the self-awareness and the realize themselves. The last, but not least important, we suggest some policy recommendations to the Shaanxi Province to raise the human capital.