Rural Human Capital Formation

In knowledge economy era, human capital can increase the economy growth greatly. The formation of human capital is the key to the needs of transforming the traditional agriculture into modern agriculture and to the necessary condition of realizing industrialization management and sustainable development of agriculture and to the inevitable demands of increasing agricultural economy growth and peasant's income in Henan rural areas.Human capital is formed by means of investment and education is the main way to form human capital. The paper draws the thought of human capital investment into study. Based on great data, used all kinds of indexes, the paper analyzes the condition of human capital form at an angle of positive analysis in Henan rural areas.For human capital stock, there are great population and abundant labor resources in Henan rural areas. The quality of human capital is promoting constantly. However, the farmers are not well off, the education level of most labors is lower and the people who study agriculture skill is not enough. The labors over 70% centralize in the first industry, which is inappropriate.At angle of human capital investment, the idea about human capital investment should be strengthened. The present rural education in Henan province is not the natural rural education and the input to the primary education isn't enough. The context of education loses contact with the economy development in rural areas, which has necessary association with our educational system. We have to continuously reform and perfect the dual-system on education.The paper analyzes the question of investment and earning in the course of human capital form. The character of earning outward led to the non-symmetry of input and output, which will make the best input quantity lower than Pareto Efficiency. Nowadays, the correlation of human capital level and earning is strengthening in Henan rural areas. The calculation conclusion of Mincer Earning Function indicates that the earning rate of senior education is the highest, but the earning rate is still lower, which is associated with the condition that the context of education lost contact with reality and earning outward of education in Henan rural areas.Finally, the paper presents some strategies to increase human capital form in Henan rural areas. We should strengthen the population's synthesis control. The paper proposes that the main body of human capital should be pluralism, especially the government's impaction on education investment. What's more, the nature of rural education should be the primary education and vocational education, neither of them can be emphasize at the expense of the other.