The Impact Of Human Capital On Non-farm Employment Income

In recent years, the changing of rural labor's employment structure mainly embodies in the field of non-agricultural sector. Non-agricultural employment, especially off-farm employment outside hometowns is increasingly becoming the most influencing social phenomena in the contemporary era and an important phenomenon drawing general attention. With the increasing non-agricultural employment opportunity, the role of non-agricultural employment in increasing farmers' income is becoming more and more important.In the situation of the increasing of non-agricultural employment and the enhancement of its contribution to rural household income, we need think another problem existing in the transition stage. Why non-agricultural employment rates in some villages are higher than others in the precondition of the same institution and policy. In the same village with a lot of same or similar external conditions, such as local development level of economy, local policy, transportation and geographical environment and so on, why some rural laborers participate in the non-agricultural employment, others don't? Why some rural laborers find non-agricultural employment opportunities inside the village, others outside the village? Why some rural laborers' incomes are higher than others? What are motives for rural laborers to seek for non-agricultural employment? In the course of non-agricultural employment, what are roles of human capital? What are roles of household and village environmental variables? Does human capital play the same roles in non-agricultural employment inside the village and outside the village? The dissertation takes human capital as a cut-in point, and tries to answer the above questions from microcosmic perspective.Based on the assumption that rural laborer is a "rational economic person" and the system structure is fixed, and classification of places of non-agricultural employment as inside the village and outside the village, the paper analyses respectively the influences of education, training, health on the non-agricultural employment and income inside and outside the village utilizing data collected from the survey of rural households and the questionnaire survey in Shanxi province. Concretely, the paper researches on the influence of human capital on non-agricultural participation, the influence of human capital on non-agricultural employment motivation, the influence of human capital on non-agricultural labor supply, the influence of human capital on non-agricultural income. The paper mainly uses empirical study. Given the bias selection, Probit model and Heckman model are used as main analyzing tools. The paper consists of eight chapters:Chapter One "Introduction" describes the study's background and significance, object and methodology, framework and content, key question and theoretichypotheses for the economic analysis. Chapter Two is "the basic definition". First, this part expatiates on the definition of the human capital that other researchers annotate from the perspective of formation, content and mix. Second, the part analyses the clarification and the index of measure. Finally the definition in the dissertation of human capital and non-agricultural employment is put forth.Chapter Three is "Summarization of the Study". From the perspective of the composition of human capital, this part makes a review of the influence of education, training ancLhealth on non-agricultural employment. The chapter is concluded with a brief remark.Chapter Four discusses the influence of human capital on non-agricultural participation. Based on the literature review of human capital on non-agricultural participation, this part makes an across analysis of human capital and non-agricultural participation rate, non-agricultural employment distribution (including the trade distribution, occupation distribution, and regional distribution), and uses the Probit Model to analyze the influencing factors of the rural labor force's non-agricultural participation, and computes the marginal influence of human capital on non-agricultural participation both inside and outside village. The results indicate that there is an obvious difference of the marginal influence of the years of schooling on non-agricultural participation between inside the village and outside the village, and the marginal influence outside the village is higher than that inside the village. This means that the threshold of the non-agricultural participation outside the village is higher than that inside the village. Having a technical title doesn't have a significant positive influence on non-agricultural participation both inside the village and outside the village. Attaining the vocational education or training is positively associated with non-agricultural employment participation both inside the village and outside the village, and the influence on the married samples is more prominent. Excellent self-evaluated health status (abr. SRHS) has significant negative influencing on non-agricultural employment participation inside the village, but excellent and fine SRHS have positive influence on rural labor force's non-agricultural participation outside the village.Chapter Five explores the influence of human capital on the motivation of non-agricultural employment. With the data from questionnaire survey and based on the factor analysis, the dissertation gets four facets of the motivation of off-farm: the motivation of seeking for development, the motivation of increasing income, the motivation of increasing children's opportunity of attaining education, the motivation of going with the stream;and then makes an independent T test, analysis of variances for rural labor force with different human capital.The results of independent T test and analysis of variance can be given as follows: the laborers with higher educational degree, training experience, skills, good health intend to have the motivation of development;while male laborers who are aged and married intend to have themotivation of improving income and the motivation of expanding children's opportunity of attaining education;for the laborers with more working experience, their motivation of improving the income is stronger, while for the laborers with less working experience usually have motivation of going with the stream.Chapter Six examines the influence of human capital on non-agricultural labor supply. Based on the review of literature on the influence of human capital on non-agricultural labor supply, the paper makes an across analysis for human capital and time distribution of non-agricultural employment and analyses the influence of human capital on non-agricultural labor supply both inside the village and outside the village with Tobit Model. The results are as follows: the years of schooling are not the determinant of non-agricultural labor supply inside the village but significantly positive factor influencing non-agricultural labor supply outside the village. Having technical titles has more significant influence inside the village than outside the village. Receiving the vocational education or training has an obviously positive impact on the unmarried samples inside the village and all samples of non-agricultural labor supply outside the village. Health doesn't show significance correlation with non-agricultural labor supply inside the village. But excellent and fine SRHS outside the village show more significance.Chapter Seven has an empirical analysis about the influence of human capital on income. First of all, based on the systematic review and remark of domestic and overseas literature, the dissertation has an across analysis about human capital on the daily and annual income's source structure. Second, it makes regression on the determination of non-agricultural daily and annual income. Third, with the method of quantile regression, it examines the influence of human capital on the distribution of daily and annual income. Finally, with the method of OLS and Heckman estimate, it studies the important roles of human capital in daily and annual income.As to years of schooling, the estimation results of QR indicate that primary education plays no significant roles in increasing non-agricultural income, but junior and higher education plays significant roles. The results of OLS show that the years of schooling hasn't represented statistical significance, but after bias selection, both inside the village and outside the village, the years of schooling contribute significantly and positively to daily and annual income.As to technical title, whether corrected or not, having technical titles has significantly positive impact on non-agricultural income inside the village, but outside the village, it doesn't show statistical significance even if the correction is done, but the results of QR show that having technical titles has positive influence on increasing the annual income of high quantile point outside the village.As to vocational education or training, inside the village, having attained vocational education or training is negatively associated with daily and annual income, outside the village, the results of OLS show that there isn't statistical meaning forvocational education or training on daily income, but after bias selection, it is positively correlated with the annual income.For SHRS, whether corrected or not, every variable of SHRS doesn't have influence on income inside the village. While in the decision on daily income outside the village, the status of health is becoming more important. Only excellent SHRS is positively associated with annual income.Chapter Eight draws conclusion and gives policy implications. In this part, based on some conclusions, some suggestions are put forward from the perspectives inside the village and outside the village. Policy implications include the following aspects: ?increasing the opportunity of education: carries out compulsory education and increases investment in secondary education inside the village;solves the problems that migrant workers' children have difficulties in admission to urban schools in cities and provides further education and training for migrant workers outside the village;(2) improving the rate of training: innovates the pattern of training and improves the cognition of trainees inside the village;creates more training opportunities with the help of NGO outside the village;?improving the medical care conditions: popularizes the new rural cooperative medical system, improves rural and sanitation facilities and environment, provides rural health education inside the village;with reference to the experience of Shanghai, enhances the medical insurance of migrant workers outside the village;?improving institutional environment: creates a good policy environment, encourages migrant workers to return their hometowns for new business, provides credit support, simplifies work procedures inside the village;, cancels the restrictions on migrant workers, establishes the uniform and open labor market, establishes reasonable employment mechanism of "two-way choice" outside the village.