Human Capital Economic Growth And The Transfer Of Rural Labor

The transfer of rural labor is an inevitable phenomenon in the process from an agricultural society to an industrial society all over the world. It is also the inevitable result of industrialization, urbanization and modernization. The problems about "Agriculture, Rural areas and Peasantry" has been the Salient constraints in promoting coordinated development and modernization process of socio-economic. Over the years, the core of the issue is farmers. The transfer of rural surplus labor force is the focus and difficulty of the "three rural" issue, it is also an important breakthrough to solve the "Problems about Agriculture, Rural areas and Peasantry". This paper makes the comparative analysis on the transfer of rural labor between China and India to deal with this problem. Although developed countries provide much experience, it is not significant to China according to change of domestic situation and international environment. There are many similarities between China and India such as the development of history, population scale, land area, starting point of modernization and so on, so making a comparative analysis on process characteristic of the transfer of rural labor not only has broken through the traditional mode, but also learned lessons from the process of transfer of rural labor in India to provide the experience of rural labor transfer for China.Based on the previous theoretical research and empirical research, this paper makes the comparative analysis on the transfer of rural labor between China and India to focus on the examination of human capital and the transfer of rural labor relations. The choice of human capital and economic growth was mainly based on subjective factors and objective factors. Human capital is the effect of rural labor transfer of subjective factors, which is also one of the conditions for the non-farm jobs. Economic growth can supply a large number of non-farm jobs, so it can provide objective conditions for the realization of the rural labor transfer. This paper adopts Chinese and Indian statistical data to construct measure model, make empirical test to the relationship between the stock of human capital, economic growth and the lag variable and transfer of rural labor. The conclusion draws: Found that human capital play an promoting role in the rural labor force transfer, while economic growth has not sure influence. The stimulative effect of human capital to the rural labor force transfer in China is more remarkable than India. China’s economic growth has a positive role in promoting the transfer of rural labor, however, India economic growth has no significant role in even may hinder process of the rural labor transfer. Higher industry access threshold and lower the quality of labor of India is the main reason causing the difference between China and India, which requires the Government to continue to increase investment in education to improve the human capital stock, adjust the industrial structure, vigorously develop the labor-intensive industries.