Study On Human Capital Investment During China’s Industrial Structure Supererogation

Human capital investment propels the corporate, industrial, social and economic growth. It can expedite industrial structure transformation, reinforce industrial innovation ability and speed industrial transfer and spread, and therefore give an ever-increasing driving force to the industrial structure supererogation. Empirical researches tell us that China’s human capital investment not only increases outputs, but also attaches externalities and thresholds to the economic growth. However, as to China’s education investment, there are problems such as insufficient total government investment, inappropriate government investment structure, blind and impulse family investments and unbalanced investments in different regions; and, as to corporate human capital investment, deficiencies including inadequate investments in on-the-job training, unreasonable training costs sharing, unpredictable return on training investments, low appreciation of human capital as well as serious talent losses and wastes can also be found. And lagged-behind educational system reform, low labor marketization, drawbacks in compensation systems and incomplete human capital contracts shall take the blame.The international comparison shows that, overall, China’s still on the second half stage of mid-industrialization. It further reflects that China has been more engaged in physical capital investment, which obviously can’t quench the thirst of economic transition, industrial structure supererogation and technological progresses for human capital. Consequently, to promote human capital investment and strengthen its technological, industrial and economic effects, China must learn from the experience of the developed counties, and, in particular, take advantages of social resources to expand the coverage of education, innovate the industrial education, perfect the property rights system of human capital and the human capital portfolio investment, reform the labor and personnel system and establish a mechanism under which a health industrial structure and human capital investment can develop hand in hand, so as to speed up the system and mechanism innovation.