Income Distributional Effects Of Human Capital Investment

Three decades since reform and opening up, China's economic has developed rapidly, however the gap between rich and poor in our society is widening, residents'revenue in the proportion of GDP declined year after year, which leads to China's economic growth and income of structural imbalance, so how to realize fair income distribution is one of the biggest challenges facing China. Extensive research at home and abroad shows that human capital level determines individual income level, the more investment on education and health to the poverty population can narrow the income gap and fair income distribution effectively, thus income distribution research based on human capital have important realistic social significance to promote reform of the income distribution system and establish human resource power.This study aims to introduce the human capital concept, with practical survey data analysis, to describe our income distribution situation, and at last put forward suggestions of human capital, the specific contents are as follows:The first chapter is quotation. This chapter focuses on the research background, purpose, significance and the general ideas, methods, contents, innovations of the research.The second chapter is literature review. In this part human capital and income distribution and the relationship between the two are briefly reviewed.The third chapter is about human capital and income distribution's running mechanism, it mainly focuses on individual and society human capital, using preference curves in macroeconomic to analysis.The fourth chapter use ordinary least squares method to analyze. Under the brief description of the sample data, It applies common least-square method to model selection, at last confirm the final quantile regression model.The fifth chapter use quantile regression method to analyze human capital's income distribution effects. According to CHNS1997-2006 survey data, It use quantile regression method from static and dynamic angle to analyze human capital's income distribution effect.The sixth chapter focus on the urban-rural income gap based on the conclusions of human capital income distribution effects.The seventh chapter is conclusions and recommendations. According to results of the research, human capital significantly affected residents' income, and human capital investment items respectively show different income distribution effect, at last based on these results the research proposed human capital income distribution improvement suggestions.