Skill Biased Technological Change And Its Effect On Structure Of Human Capital

With the sustained and rapid development of our country’s economy, economicgrowth theory becomes a hot issue in the study of economics. In the last decades,technological progress plays a very important role in economic growth. Because ofthat, the research of technical progress is developing in greater depth. As studying theinteraction of technology progress and Labor skill’s structure, it shows thefeature of China is a skill biased technological change. The specific performancesare the improvement of skill premium and the increase to the demand for skilled labor.According to the recent literature research, the existence ofskill biased technological change has been quantitative proof. However, as theskill biased technological change taking an increase demand for skilled labor andimprovement of skill premium, the influence of structure of human capital taken bythose two factors hasn’t been proof. Similar to technological progress, in theeconomic growth theory, human capital is also an important part. With the sound andrapid economic development, for the further development of rapid economy, theimportance of human capital is self-evident. In the current literature research, most ofthem take the Human capital accumulation as a studying target. However, with theimprovement of human capital accumulation, reasonable allocation of human capitalstructure for the importance of national economic development is more significant. Inthis article we will focus on the human capital structure. Firstly, by defining thehuman capital gini coefficient，make it to measure the rationality of the structure ofhuman capital. And use the manifestation of each province across the country toexplain interaction effect of skill biased technological change. Based on the currentresearch, this article takes a further study and exploration of theskill biased technological change. Build and calculate the human capital gini coefficient of each province, using them to measure the structure of human capital.By calculating the human capital gini coefficient, we found that the human capitalgini coefficient of each province have trended down during the sample period. That isto say, the human capital structure of each province has been improved, and theopportunity of people accepting further education is getting more equal.By building the proxy indicator of human capital structure——human capitalgini coefficient, according to the statistics, research the interaction effect ofskill biased technological change and human capital structure. The fact thatskill biased technological change exists in our country, and raises the skill premiumlevel and demand for skilled labor. Next research the interaction effect of the skillpremium level or demand for skilled labor and human capital structure. First byestablishing a two-stage overlapping generation model, it demonstrates therelationship between skill biased technological change and human capital. Next,considering the characteristics of human capital gini coefficient in (0,1) interval,select the panel data model with the quantile regression method to estimate theinteraction effect between skill biased technological change and human capitalstructure. The result shows that the influence of the human capital structure taken bythe skill biased technological change hasn’t been described exactly. Indicators ofhuman capital gini coefficient agents in human capital structure in the lower sub-sites,technological progress to promote the rational allocation of human capital structure,human capital gini coefficient is higher sub-sites, technological progress can notmake human capital structure reasonable. The skill premium level can improve thestructure of human capital，but the increase demand for skilled labor has negativeeffect on the structure of human capital. On the other hand, the improvement of thehuman capital structure helps to improve our skill biased technological change;however this effect has been decreased by the increasing level ofskill biased technological change.