Empirical Study Of Impact Of Investment In Human Capital In Rural Areas On Farmers’ Income

In recent years, the Government attaches particular importance torural issues, the annual Central Economic Work Conference always issueDocument No.1on three rural problems, it shows that the Governmentagree with the importance of three rural issues. Farmers’ income is thecore issue of the "three rural" issue, it is directly related to China’snational economy can be sustained, rapid and healthy development,related to rural areas and even the country’s social stability, the buildingof a harmonious society, as well as the third strategic goal success.Farmers’ income growth is showing a slowing trend year by year, netof inflation and other factors, the growth rate of real income is less than5%; the cost of living is significantly increased due to the impact of pricerises too fast, the income of the farmers, not only with the urban and ruralincomes compared to the gap is widening, and rural residents in internalincome gap is also widening. Therefore, the increase of farmers’ incomeis imminent.Farmers’ income growth factors are many, China’s agriculturalstructure and rural economic structure is not enough reasonable, thecirculation system of agricultural products is still not perfect, humancapital is still relatively low level, which are limiting the increase offarmers’ income. And rural human capital is a very important factorwhich affects farmers ’income growth, from the point of view of humancapital This article intends to study the reasons for the slowdown of theincome of the farmers, in order to put forward policy recommendations toincrease farmers’ income.Firstly, the thesis introduce the basic theory of human capital,, thecourse of development of human capital in the West and China,the wayof accumulation of human capital,peasant’s income, and then analyze themechanism of human capital affecting the income of farmers; the nextempirical analysis is about the impact of human capital on the income offarmers in Fuzhou City, including descriptive statistics, regressionanalysis, and the contribution rate of human capital to farmers’ incomegrowth estimates. In the descriptive statistics, the rural labor force whohas a high cultural level is more accessible to non-agricultural industries, therefore have better liquidity; the labor force With high levels of literacyor participated in the training is more competitive, so less likely returnhome. In the regression analysis, education Level is the greatest impacton rural per capita net income of three factors, The land is still the mostimportant factor in agricultural income.As the non-agricultural income,education level is the most crucial factor. In terms of the farmers engagedin agricultural production, more arable land, the higher the income;Arable land is the key to revenue growth. For farmers engaged innon-agricultural production, Investment in human capital is the key toincreasing revenue.Last, this paper presents several recommendations to improveinvestment in human capital in rural areas, including strengthening basiceducation in rural areas, intensifying vocational training, the promotion ofsurplus labor transfer, increasing investment in rural health services.