The Study On The Impact Of Human Capital Investment To Rural Non-agriculture Employment In Henan Province

The prominent restriction has always been factor agriculture, rural areas and farmers in economic and social development in our country for a long time, the core of agriculture, rural areas and farmers is the development problem of farmer, and employment is vital to peoples’ livelihood. But the agriculture employment ability is limited strictly caused by the the contradiction of people and land in our country, the large number of surplus labor in agriculture under the traditional economy need to transfer, the key measure to solve the problem is how to promote rural labor force transfer to non-farm fields successfully. The questions of difficult employment and low labor remuneration appear in the non-agriculture employment of rural labor force in recent years, although the national policy and household registration system are the causes of these problems, the final reason of these problems is that farmer can’t meet the work, this ultimately depends on the situation of farmers’human capital.So the study is very important on the impact of human capital investment to non-agriculture employment of rural labor force. Henan is a traditional agriculture and labor force province, the high agriculture employment rate has become the prominent factor restricting the development of economy and society in Henan province, how to make the large number of rural surplus labor force transfer has important practical significance to promote farmers non-agriculture employment, and to achieve the optimization and upgrading of industrial structure etc.To analyze the impact of human capital investment in each dimension to rural non-agriculture employment scale and structure in Henan province is the goal of this paper based on the relevant theories and methods of domestic and foreign human capital investment and non-agriculture employment and current situation and characteristics of human capital investment and non-farm employment of rural labor force in Henan province.In order to achieve the research objectives, this thesis carried out the following studies:(1)Define the concept of human capital, human capital investment, rural labor force, and non-agriculture employment of rural labor force; review the related theory of human capital and non-farm employment; analyze the influence mechanism of human capital investment on non-agriculture employment of rural labor force.(2)Analyze the current situation and existing question of rural human capital investment in each dimension in Henan province, the status of rural labor force in the number of non-farm employment, profession, income and the other features of rural labor force in the aspects of cultural quality, age, transfer pathway etc.(3)Analyze the influence of rural human capital investment in each dimension to rural non-agriculture employment scale and structure of rural labor force in Henan province through the empirical methods, using the Eviews statistics software and the 1985-2013 time series data in Henan province, establishing Vector Error Correction model, and using the other inspection methods.(4)Put forward to the suggestions and measures to promote off-farm employment of rural labor force and optimize non-agriculture employment structure in Henan province from the perspective of human capital investment based on the existing problem of non-farm employment of rural labor force and human capital investment in Henan province at present.By using the theoretical analysis and empirical research methods, the main conclusion of this thesis are:(1)The human capital investments are on the increase in education, health, and migration in rural area in Henan Province, but the overall investment level is low, the gap between urban and rural areas is obvious.(2)The number of non-agriculture employment of rural labor force in Henan province increases year by year, the proportion of the number of non-farm employment accounting for agricultural employment and per capita non-farm employment income of rural labor force also increase year by year, but the overall cultural quality of non-farm employment in Henan province is low and the work is generally unstable.(3)There is a long-term stable equilibrium relationship between the human capital investments in education, health, and migration in rural area and the off-farm employment scale of rural labor forces in Henan province. The effect of human capital investment in education on off-farm employment scale of rural labor forces is the largest, followed by human capital investment in health, migration minimum. (4)There is also a long-term stable equilibrium relationship between the human capital investments in education, health, and migration in rural area and the non-agriculture employment structure of rural labor forces in Henan province. The effect of human capital investment in migration on non-agriculture employment structure of rural labor forces is the largest, followed by human capital investment in education, health minimum.Based on the conclusions above, this thesis proposes the following recommendations:(1) Improve the system of education in rural areas, increase investment in rural education, upgrade farmers’knowledge, strengthen farmers’ability of non-agriculture employment. (2)Strengthen the investment in rural medical and healthy area in the country, improve the healthy level in rural area, ensure that the farmers can access to basic medical service.(3)Pay attention to the vocational and technical training on farmers, establish diversified investment mechanism on training, increase the opportunities of farmers’non-agriculture employment.(4) Increase transfer investment, carry out the reform of household registration system actively, improve the supply and demand information network of labor market in rural area, eliminate the obstacles of flow rural labor.