The Effect Of Government Investment In Education On The Distribution Of Income Of Chinese Farmers

Previous study about income of farmers is mostly using natural resources, geographical location, agricultural technology and institution to explain the income distribution of farmers. While most of them ignore the human capital factors, this article is to describe government investment in rural human capital and situation of income of farmers from the perspective of government, and to explore the relationship between them. This budget funds for per education student is selected to measure the intensity of government investment in rural human capital , and the two levels including primary and secondary are used to explorer the effectiveness of government investment in promoting farmer income, and draw the following conclusions:Firstly, the government's investment in compulsory education including rural primary, and junior high school has a significant effect on income of farmers in the long term. However, no significant short-term effect has been seen. That is why it is difficult to see increased investment from government's planning on basic education in rural areas in the long-term; Secondly, government's investment in rural compulsory education is unbalanced which has begun to affect income inequality of farmers and will further affect the government's investment in rural compulsory education . The lag of education exits which makes return on investment in education is difficult to be seen in the short term. This further demonstrates the government's investment on rural basic education must be in long term. As the local financial strength of local governments is unbalanced which leads to regional unbalanced investment on education, this requires the Government to coordinate a national financial education funding in order to ensure fairnessFinally, relevant proposals are put forward from the perspective of government policy and they are mainly in the following two aspects: on the one hand , we need increase the amount of government investment in rural human capital which is to be equal on the constant financial institutional; On the other hand,the current financial structure in favor of education needs to be reformed to enable the provincial government and the central government to assume primary responsibility ,and to seek community endorsement on rural human capital.