Research On The Rural Household Decision-making Of Human Capital Investment In Henan Province

In the era of knowledge economy, human capital is the main force to promote economic development. The 21st century should be driven by the knowledge-based economy in rural China. Building Socialist New Villages of central Situation, from the overall interest of building a well-off society is a major strategic decision to the successful completion of this strategic task.The key is to strive to foster new farmers, improve the comprehensive quality of farmers, and make them technological, educated and management.The research viewpoint of this paper is Henan province, and the object of study is rural households which is the main micro-investment of human capital in rural, and considers empirical analysis as the main research methods.This paper also analyzes the content of human capital investment in rural households'decision-making system based on inspecting status of rural households and investment in human capital dynamics in Henen province, and uses logistic regression model to empirical study factors which affect all kinds of human capital investment in rural households. The main conclusions are as follows:1.The research on rural households of human capital investment in Henan province shows that a wide gap exists between the total urban and rural residents and the quality of human capital, register as the gap between the stock and expenditure.In general, human capital investment of rural households was an increasing trend year by year, however, with urban residents has widened the distance. And the level of investment of rural households in education trends fluctuated, the development process can be divided into three stages:the first stage, from 1980 to 1990;the second stage, from 1990 to 2003;the third stage, from 2003 to 2008.2.This paper analyzes the content of human capital investment in the rural household decision-making system, and compares the costs and benefits of human capital investment in rural households.The result shows that explicit costs and hidden costs of human capital investment in rural households are high, and income lagged and unstable. Rural households lack the power of investment based on cost-benefit decision model.3.The effect factors on the rural household decision-making of human capital investment in Henan province are complicated, and differences exist due to different investment content. Household income level, credit availability, number of minor children in the family, household investment philosophy, own situation of investee and humanistic environment of household location all affect investor decision-making in a large part. Besides, policy factors such as new system of rural cooperative medical and health care services, state education policy, old-age security system in rural areas and various systems involved in labor migration affect rural households decision-making of human capital investment a lot.4. This paper presents policy recommendations proposal to increase rural households human capital investment in Henan province based on empirical study, and to explain from farmer income, integrated control of population, investment in education, investment in training, health investment, migration investment and so on.