Empirical Study On Benefit And Risk Of Education Investment

In modern society, human capital is one of the most dynamic productive factor, playing an increasingly important role. As an important part of human capital investment, personal investment in education can affect both individual investors and also the harmonious development of society. In General, if there is a significant rise in the rate of return on investment trends, people’s demand for education will naturally be increased significantly. However, different education groups in recent years have not showed a consistent increase in demand for education.While most people showed growing demand for higher education aspirations. But some groups began to take the initiative to give up educational opportunities, showing lack of demand for education. There are many reasons for this seemingly contradictory phenomena, Which reasons such as rising costs of education, pedagogical knowledge apart from practice. The other hand, for after graduation to find a satisfactory job and obtain the desired benefits of fear is the reason why students try to drop out of educational opportunities. Based on the analysis of the benefits and risks of the individual in education, investing in education research has opened up a new road. Through the study of the benefits and risks of investment in education, which playing a positive role for increased investment in education and some inspiration and reference value of the reform of the education, and individuals can also avoidinvestment risks of education and make a rational investment of practical significance.This article is based on the study of human capital theory and the manpower investment in education research, using the method of analysis,testablished in 1989 to 2011 micro survey data. Henan province is selected as the object of study. The specific reference to the education problem in the province have an impact and great practical significance on the educators of the province. At first regular Mincer-type wage equation is to be estimated Henan province educational investment yields from 1989 to 2011, and then use the modifying Mincer-type wage equation to estimate the return on investment in education and the educational investment risk. Finally the formal educational return on investment is compared to the modifying income equation in order to summarize the relationship between education investment and education investment risk.From the empirical analysis, we can get these result: Henan province educational investment trends in yields continued to rise, but the increase slowed in recent years, as to the description of the top of the inverted u-shaped, our jury is still out. Increasing the education period was actually reduced the risk of education investment income. From 1989 to 2011 in Henan province educational investment yields on the rise, at the same time, the risk of investment in education was droping, meaningeducation is obvious. Education in Henan province in recent years on reducing total investment risks is gradually increased.The risk of men is clearly higher than that of female education in Henan. Educational investment risk in rural areas is higher than that in urban areas of Henan province and volatility is larger.Based on the above analysis, this paper puts forward a series of rationalization of policies and proposals. Through promoting labour market reforms mechanisms, optimizing the allocation of educational resources and adjusting educational institutions and industrial upgrading,we can finally realize the promoting effect of education on earnings, in order to give great impetus to the healthy and stable development of society and economy.