Research On The Impact Of Rural Human Capital Investment On Rural Residents' Income

As an agriculture country, China has a large number of rural residents. The problem of agriculture, rural and farmer has relationship with our nationals'quality improvement and economic development. It also has relationship with social stability and national prosperity. The problem of farmers'income is the core of"Three Rural Issues", which has direct relationship with rural and national social stability. So, farmers'income growth is the key about whether the national economy can develop sustainably, rapidly and healthy. As the human capital is the key factor of rural residents'income growth, research about the influence of current human capital investment in rural areas on rural residents'income, and then putting some advices of how to improve human capital investment, has significant practical sense. In order to improve the rural residents'income, this paper, from the view of human capital, studies the influence of rural human capital investment on rural residents'income and the way of how to improve rural residents'income.Firstly, it introduces the concept of human capital and human capital investment, the human capital theory of Thodore·W·Schults, jacob·mincer, Gary·Stanley·Becker and the New Economic Growth Theory. Then this paper analyzes the current rural human capital investment situation and reasons. According the statistics, we know that China has a low level of human capital stock and human capital investment. The low level is mainly embodied in aspects such as the low level of rural residents'health and less spending of health care, and extremely uneven human capital of different area. The main reason is low national economic development level, old policy and idea, and the poor rural education.Using the Cobb-Douglas function, the theory model of the affect of rural human capital investment on rural residents'income indicates that rural residents'educational year, rural residents'health care spending and peasants'technical training takes a positive effect on rural residents'income growth. Therefore, the rural residents'income can improved and the rural economic growth can be promoted by propelling the basic education investment, increasing health care spending and strengthening vocational skills training. Further analysis shows that the human capital investment mainly influences the rural residents' income by two ways as the agriculture income and no-agriculture income.Thus, policymakers should take vigorously effective measures to develop rural basic education and vocational skills training, and reform the current dualistic system and several systems which attach to the dualistic system, which can increase the rural residents'income naturally and then improve their life quality.