The Influence Of Public Human Capital Investment On The Intergenerational Income Mobility

Equal opportunity is one of the important goals of social justice, and also the important goal of the government’s public policy. Intergenerational income mobility is the change of the income distribution between offspring and fatherhood. intergenerational income mobility is an important index to measure the opportunity. Existed research shows that the elasticity of intergenerational income is more than 0.5 in China. In 2014, China’s per capita disposable income is 20167,Gansu Province is the last one of per capite income, which per capita net income of farmers is only 5736. 0.5 of intergenerational income elasticity means that the average income level of rural households in Gansu Province, need at least 100 years(4 generations) to reach the level of the national per capita disposable income. Germany’s intergenerational income elasticity is only 0.11, from Germany’s per capita disposable income level of about 62% Germans, to reach the level of the German national average income level is only 1 generations(about 25 years). It can be seen that the elasticity of intergenerational income is quite high. Therefore, it is an urgent task for China to narrow the income gap and increase the mobility of the intergenerational income.Government plays an important role in modern economy, It impact the economic development, economic structure, economic fluctuation and income distribution. This paper is based on the former model, which not only takes into account the inherent factor of human capital, but also considers the human capital of public education, private education and parents. And then analyzes the influence of the government’s public education expenditure on the intergenerational income mobility, income inequality and its operating mechanism.The study found that intergenerational income inequality and intergenerational income mobility negative correlation. The two in the long term is to converge to the steady state value. Intergenerational income inequality and intergenerational income mobility are mainly derived from the differences in personal endowment, and the difference between the difference, the greater the difference, the higher the income inequality, the lower the mobility of intergenerational transmission. The status of the father’s human capital affects the inequality and the liquidity of the offspring, the higher the return of the sub- generation human capital, the higher the investment of the human capital of the offspring, and the cumulative effect of the intergenerational transmission.The government’s effective human capital investment has the income effect, can improve the individual income. At the same time, the government’s influence factors, namely, the government’s effective human capital in the economic body balance degree, the effective government public spending more is balanced, the government influence factor is lower, then the intergenerational continuity is lower, and then reduce the transmission of intergenerational income inequality, improve the accumulation effect of intergenerational mobility, reduce the convergence of income inequality and income and the speed of steady state value.As far as it is concerned, this paper proposes the following policy : firstly, to improve the efficiency of public human capital supply, which is the basis of improving the efficiency of public human capital investment, which is the basis of improving the efficiency of the public expenditure. Secondly, this paper suggests that the government should improve the efficiency of public expenditure. Specific measures include the following four aspects: the establishment of a sound system of infant education, to further improve the compulsory education system, the reasonable reform of higher education, to reduce the power, money, wealth and residential areas of public human capital supply.