The Influence Of Financial Development On Urban Residents' Income Level From The Perspective Of Human Capital

As the core and lifeline of modern economy,finance has an important impact on a country's economic growth and residents' income.At the same time,competition among regions has gradually evolved into competition for talents,and talents have played an increasing role in promoting scientific and technological progress and social development.Therefore,this article attempts to explore how financial development affects the income of residents from the perspective of human capital in a region.This article is divided into five parts.The first part is the introduction.The second part is mainly related to theoretical analysis.The third part mainly analyzes the current situation of human capital,financial development and income of urban residents in the western region.The fourth part is an empirical study.Using the nonlinear regression technique-threshold regression model proposed by Hansen(1999),12 western provinces as the object of study,and provincial panel data from 2003-2016 are used to use human capital as threshold variable to study whether there is a threshold effect of human capital on the impact of financial development on the income level of urban residents in the western region.The fifth part:conclusion and policy recommendations.The study comes to the following conclusions:The first is that the size and direction of impact of financial development on the income level of urban residents has a double threshold effect based on human capital,and the threshold value of human capital stock are 10.0810 and 11.6510 respectively.When the level of human capital is less than 10.0810,financial development is negatively related to the growth of urban residents' income,when the level of human capital is higher than 11.6510,financial development has a significant positive effect on urban residents,income growth,When the human capital level is above 10.0810 and under 11.6510,the positive effect of financial development on urban residents'income is not significant;The second is that human capital level of western provinces are not balanced;The third is that there is a big gap between the eastern and western regions in human capital stock and financial development.Therefore,this paper puts forward several suggestions.The first is that developing education in the west vigorously.The second is that optimizing the industrial structure.The third is that accelerating the coordinated development between urbanization and industrial structure.The fourth is that strengthening the coordinated development between financial development and human capital.