Return On Investment Of The Educated In Higher Education Of China From The Perspective Of The Human Capital

As in the critical period of social transformation,"Recruitment difficulties" and "Employment difficulties" both exist featuring the job market of China. Consequently, some people begin to doubt the significance of higher education, which, in fact, is a re-examination of the current investment in higher education. Therefore, the paper, based on human capital theory, with "cost-benefit" model and the data collected through surveys, analyzes the costs and benefits of the investment of the educated and puts forward suggestions to help the educated to make a more informed choice when investing in higher education.From the perspective of human capital, the paper is mainly about return on investment of the educated in higher education of China:First of all, the paper reviews the domestic and foreign researches in this field.Secondly, the paper defines the concept of higher education and the investment in education, and outlined the nature of the investment in higher education, and makes theoretical analysis of the investment of the educated in higher education of China.Thirdly, the paper summarizes the theoretical basis of researches on return on investment in higher education from two ways, one based on the evolution, the essence and characteristics of human capital theory, and another one based on the essence and benefit-cost of human capital investment theory. Under the specific situation of return on investment of the educated in higher education of China, the paper makes detailed analysis of the cost of the educated of higher education.Fourthly, the paper introduces two methods, the benefit-cost method and the income function method, applying in the analysis of individual higher education investment of China, and also discusses the advantages and disadvantages of them and points out that research data is the main factor for choosing the right method.Fifthly, with the data of the investment of the educated in higher education collected from questionnaires, as well as the data of this year’s college graduates salary, the paper makes a practical research by benefit-cost method.Finally, according to the results, the paper suggests that the cost of higher education should be shared under a certain mechanism, which not only takes into account the premise of fairness of education, but also could be jointly maintained by the government, colleges, and individuals. Moreover, the paper gives the educated of higher education some advice:accurate positioning, risk perceptions, rational in vestment, etc., in order to give the educated some references to help them make more informed decisions.