Research On The Impact Of Educational Investment Structure On The Intergenerational Flow Of Residents’ Income In The Western Region

At present,the income level of residents in the western region is not only low,but the income gap is also wide,which poses a major challenge to balancing the income gap between regions.Therefore,breaking the dual economic structure between regions and urban and rural areas in the western region is of great significance to the health and growth of China’s economic and social development.The overall gap between the western region and the eastern region is mainly manifested in human capital,knowledge and technology.Education is the most prominent reason for the shortage of human capital in the western region.In the domestic research on the low stock and quality of human capital in the western region,the researchers’ conclusions are more consistent,namely,insufficient investment in education.This research will be based on economic human capital theory,constructing a theoretical framework for analyzing the impact of education investment on intergenerational mobility in income,combining the human capital transmission mechanism of intergenerational mobility in income,and separately through social,family and individual perspectives.Explains the impact of education investment on intergenerational mobility in income.In addition,based on the actual economic situation in the western region,and drawing on the theory of Becker & Tomes’ s theory of maximizing the utility of household human capital investment in economics,a complete generational overlap model is established to explore the influence of the educational investment structure in the western region on the intergenerational flow of residents’ income.The work done in this research mainly includes the following aspects:First,systematically sort out the impact mechanism of education investment on the intergenerational flow of income.This study mainly uses the CGSS 2003,2005,2006,2008,2010,2011,2012,2013,2015 social comprehensive survey data and the “China Statistical Yearbook” and the “China Educational Finance Statistical Yearbook”,combined with the actual economic development in the western region,analyzed the current situation of education investment,and confirmed the existence of the above-mentioned social,family,and individual human capital influence mechanism.Residents in the western region are the main bearers and direct beneficiaries of family micro-education investment.The average income of residents is 3,031.344 yuan,while the actual average family micro-education investment is 12,961.351 yuan,which means that the amount of family micro-education investment is much higher than the average income of residents,this has increased the burden of residents’ lives.In the past eight years,the average budgetary education expenditure for primary education,secondary education,and higher education in the western region is 34868.364,47109.895,86978.247 yuan,and the ratio is 1:1.35:2.49,indicating that the western region has higher investment in higher education and lower investment in primary education,the investment in secondary education is also higher than that in primary education.To a certain extent,the national investment in higher education has always been too high.In addition,under the influence of developed regions with economic advantages,the “southeast”situation of high-level talents in the western region is more serious.As a result,the western region,which has only limited funds,invests heavily in higher education,creating an unreasonable situation in which backward regions support developed regions.The second is to estimate the intergenerational mobility of income in the western region and find that the logarithm of the second-generation income is negatively correlated with the age of the first generation,indicating that the increase in the age of the first generation has a negative impact on the increase of the second-generation income.The second generation bears the first-generation pension and insurance medical expenses,which is more in line with reality.The correlation between the logarithm of the income of the second generation and the education level of the first generation is 0.208,which is positively significant.This shows that the higher the level of education of the first generation of residents in the western region,the higher the level of education of the second generation.Third,on the basis of the analysis of the status quo,sum up the government’s macroscopic and family micro-education human capital investment behaviors,and use MATLAB software to conduct mathematical simulation empirical research.Suppose that each individual lives for three periods.The first period is youth,when education is required;The second stage is middle age,when income needs to be earned;The third stage is the old age,when you have retired.Generation T received public education spending in the early years,including primary and secondary education,and individuals were unable to make economic decisions;In middle age,they will get income through labor,and as parents,they need to save and consume their children’s education,and pay taxes to the government,which then distributes the tax equally to each generation’s human capital investment.Individuals retire and consume in their old age;If there were no financial expenditure on public education,all investment in human capital for each individual child would be borne and decided by the parents themselves;The influence of the government’s macro education investment structure and the family’s micro education investment on the intergenerational income mobility is deduced mathematically from these two situationsThe study found that:if the government’s investment in education is determined and the investment in higher education is expanded,then the income of residents can be reduced to the Gini coefficient and the difference in income distribution can be improved.In the process of increasing the proportion of government investment in primary education,offspring will rely less and less on their parents’ income.Fourth,for this reason,the government should adjust the imbalance of three-level education investment,further realize the equalization of educational public services,increase the proportion of investment in elementary education in the western region,expand university entrance opportunities,and establish a fair-based human capital transmission mechanism And the investment system.At the same time,establish a performance evaluation system for government macro education investment and a government education responsibility system to promote the intergenerational flow of income in the western region.