The Industrial Allocation Of Human Capital And Its Contribution To The Growth Of Service Industry

In recent years, China’s human capital as an important production factor has a tendency to the service industry. Firstly, the second and third industry’s human capital and physical capital of 31 provinces(cities, districts) in China from 1997 to 2010 are estimated in this paper, and then the industrial allocation of human capital and the contribution to the growth of the service industry are studied.According to the estimated data, from the total and the growth rate, the situation of the second and the third industry is analyzed. The results show that the level of human capital, the total stock and the growth rate of human capital in the service industry are significantly higher than those in the second industry. The trend of the human capital to the service industry is also explained.In order to further explain the aggregation of human capital in the service industry, we investigate the distribution of new human capital in the Department. We use the complete distribution coefficient matrix in the input output technique to construct the row structure coefficient. It was found that in 2002, the proportion of new human capital allocation to the service industry was only 37.8%, and by 2007, the proportion rose to 47.04%, an increase of nearly 10 percentage points. The flow of human capital is accord with the petty- Clark theorem, it helps to adjust the industrial structure.Why human capital is concentrated in the service sector, we expect to explain this through the accounting of labor remuneration. Through the "China Statistical Yearbook", "input output table" we can calculate the second and the third industry’s labor remuneration. The results show that the marginal return of service industry is less than the second industry in 2002, but by 2007, the service industry is far greater than the second industry, the change of the factors and the factors of the elements of the market are in accordance with the industry, which drives the production factors and the marginal returns to the high marginal returns, which makes the economy from non equilibrium to equilibrium.This paper also expects to investigate the interaction between human capital and material capital in the process of industrial flow. This paper analyzes the growth of human capital and human capital in second and three industries. The results show that there is no causal relationship between human capital and material capital in the second industry. However, with the great increase of human capital in third industries, the inflow of material capital is brought up. It shows that human capital affects the industrial allocation of material capital and induces the flow of material capital to service industry.Finally, we have the second and third industry production function of the growth factor decomposition, the results show that human capital has made a great contribution to the growth of service industry, which also shows that in recent years, the service industry has been developing rapidly.In order to accelerate the development of service industry, we should make good use of the features of human capital flowing to the service industry, and to clear the channels for the flow of material capital to the service industry. Reasonable allocation of capital and labor in the service industry and promote the development of service industry from the perspective of supply. The main policy recommendations are to vigorously promote the development of human capital, improve the level of human capital. To promote the reform of the service industry tax cuts, loan interest rate market, through the market mechanism to induce the flow of material capital to the service industry; choose to start the second industry’s income distribution system reform, etc.