The Effect Of Public Educational Expenditure On Income Of Individual Labor And Its Mechanism Analysis

Using data from China Labor-force Dynamic Survey(CLDS)2016 and the public educational expenditure data from 2007-2012,this thesis analyzes the effect of public educational expenditure on the income of individual labor.At the same time,using stepwise regression method,Sobel test and Bootstrap test,this thesis analyzes the mechanism of the effect of public education expenditure on income of individual labor based on the human capital.The results are summarized as follows.First of all,through the multiple linear regression,this thesis finds that public educational expenditure of local government has a significant and positive effect on the income of individual labor.Secondly,the effect of public educational expenditure on the income of individual labor is heterogeneous in different income groups and economic conditions of individual original family.To be specific,on the one hand,public educational expenditure of local government has a positive effect on all income groups,but the effect on the high income groups is greater and more significant;on the other hand,the people whose original family is poor can benefit more from the public education financial expenditure.Thirdly,human capital is an important mediator when analyzing the effect of public educational expenditure on the income of individual labor.In other words,the effect of local governments’public educational expenditure on the individual labors’income realizes through the accumulation of human capital.Based on these findings,this thesis puts forward several policy recommendations such as provide more public educational expenditure,especially for poor-family and low-income groups,which can accelerate the human capital accumulation of vulnerable groups and raise their labor income.In addition,perfect the evaluation index system of the effect of the public educational expenditure,so as to improve the efficiency of public educational expenditure.It is of great significance to improve the labor income of residents,narrow the income gap,alleviate the intergenerational transmission of poverty and promote social equity.