Empirical Research Of The Human Capital On Income Distribution Based On The Perspective Of Education

In the late 1970s, China began to execute reform and to open up policy about developing market economy. So the national economy improved a lot with the rapid developing of economy. People's income became to rise, but the problem was that the unequal degree of income distribution was increasing and the income gap was getting wider, too. The reason about the inequality of income distribution was caused by many aspects probably. According to the theory of Human Capital Management created by Schultz and Becker, this article talks about the impact of Human Capital Management on income distribution which was based on the perspective of education. Education can be regard as educational expansion and education distribution.There are many studies about the impact of education on income distribution domestically and abroad. Some are theoretical studies, others are empirical analysis; some are domestic research, others are cross-country comparisons; some are the macro-data-based studies, others are the micro-data-based studies. As scholars have selected different objects, scope, time, and data sources, the conclusions of researches are different.In this paper, based on the summing of the researching achievements from domestic and foreign scholars, we made the empirical analysis to the model of Human Capital Management. We researched and analyzed the impact of education expansion on income distribution in China's nine provinces by selecting Chinese Nutrition and Health Survey (CHNS) 1991-2009 years of data. Through comparing with the macro data, the micro data has the problems of structure bias and inadequate sample's representativeness. However, by means of post stratification method and SAS9.2 software to weight the sample data, the adjusted sample structure and the population structure converged, the sample's representativeness were improved, too. So the empirical research had a good data base to making the conclusions more convincing. The whole paper consists of four chapters. It is organized as follows:Chapter one, analyze the theoretical and practical background of this paper. Literature review, the deficiency of current research is showed clearly through reviewing the foreign and domestic literature, and the basis thought of this paper is given. In the end the organization of the whole paper is laid out.Chapter two, introduce the theory of Human Capital Management and its development. Define the education and explain the model of Human Capital.Chapter three, firstly introduce the data coming from the CHNS database, select Gini coefficient, the average years of education and education Gini coefficient as measures, adjust the micro-data by post stratification method to improve the quality of sample. Secondly, choose the panel data to estimate the model of Human Capital Management by Eviews6.0 software, and make in-depth analysis for estimations.Chapter four, the study found that there was a close relationship among education and income distribution:First, the distribution of education in China plays a positive effect on income distribution, which will promote the equitable degree of education distribution and income distribution; secondly, expansion of education on income distribution exists similar Kuznets inverted-U relationship. This paper hopes to discover the role of education on income distribution empirical research, and on this basis to put forward some useful and reasonable policy recommendations for our current and future development of education.There are three main innovations of this paper:First, use micro-survey data to research from a personal point of view; secondly, through post-stratification weighting the micro data to reduced structure bias, improve sample representativeness; thirdly, the use of panel data can analyze the problem comprehensively.