Influences Of Regional Economic And Education Development On Expectation Of Human Capital Investment

Since reform and opening up,China has experienced sustained and rapid economic growth,and has successfully become a middle-income country.In the process of leaping over the "middle income trap",China faces two major problems:For one thing the shortage of labor force is becoming more and more serious because of the aging of China's population;For another the income gap is gradually expanding.One of the methods to solve these two problems is to improve the investment of human capital.However,after a high-speed expansion of education in our country,the phenomenon of education inequality still exists.At the same time,it becomes more and more difficult for a college graduate to get a job,which result that the risk of human capital investment is increasing and human capital investment becomes more unfavorable for family with low socio economic status.This paper studies influences of regional economic and education development on expectation of human capital investment.Based on the 2010 and 2012 data from China Family Panel Studies and hierarchical modeling this paper mainly makes an empirical analysis,and the results are as follows: First,expectation of human capital investment is different among regions with that regional differences can explain 21% variance of the expectation of human capital investment,the expectation of human capital investment in west region is lower than in central region,in rural is lower than in city,and the expectation of human capital investment differences between rural and city is higher for west and northeast region and lower for central region.Second,regional economic development doesn't increase the expectation of human capital investment through increasing education returns,but through improve the proportion of non-agricultural employment,education fiscal expenditure per capita and the number of kindergarten.At the same time,the rise of education fiscal expenditure can decrease the human capital investment inequality caused by financing ability differences,and the rise of the number of kindergarten can decrease the inequality caused by father's education differences.Third,regional education development is an important factor which can influence family's expectation of human capital investment.The increase of enrolment rate can improve expectation of human capital investment,and decrease the inequality caused by father's education differences.What's more,the increase of high school enrollment rate can decrease the expectation of human capital investment inequality caused by household net asset differences,while the rise of college entrance rate can increase the inequality,which means that family's demand for higher education is still not fully satisfied.According to the results above,corresponding policy recommendations are put forward at the last of this paper.