Human Capital Investment and Income Gap
Based on investment in human capital earnings function, from the perspective of human capital investment subject cut for families, businesses, national human capital investment on the Income Gap made some exploratory research, the main contents are as follows: First, based on human capital investment income function, generational model introduced minimum consumption, analysis of the family of human capital investment on the impact of the income gap. Analysis showed that: the budget constraints and capital market conditions do not exist, the initial human capital differences lead to income inequality, and income inequality gap caused by household investment in human capital, investment in human capital gap between families has led to the income gap. This cycle, the formation of the poor get poorer, the rich get richer Matthew effect, so that the widening income gap. In the budget constraint and capital market imperfections conditions, although low income families can get through the capital market funds needed investment in human capital, but to pay a higher interest rate financing investment in human capital leaving the impact on the income gap is uncertain.
When human capital investment rate of return greater than the loan rate, the family investment in human capital can narrow the income gap, when human capital investments than lending rates, the home of human capital investment but will widen income gaps.
Therefore, in the economy, if the family is the only human capital investment subject, then investment in human capital is difficult to narrow the income gap. Second, analysis of enterprise human capital investment impact on income inequality. Human capital investment is often non-parity, which is mainly manifested as among enterprises differences in human capital investment for employees, as well as for different employees within the same company investment in human capital differences. This paper analyzes the latter case, the impact on income inequality.
As businesses unequal human capital investment, impact employees human capital formation, compensation, increase, which causes differences in human capital, and human capital affect staff productivity and ability to work, thereby affecting the employees career development and performance pay, ultimately the formation of the income gap. Human capital investment can not only compensate for the decline in human capital depreciation parts, but also improve staff knowledge and skills level of human capital, so that employees get corporate investment in human capital than human capital investment companies do not get employees with high levels of human capital , thereby enabling employees to get enterprise human capital investment than investment in human capital did not get employees have higher labor productivity and affect employees career development.
Regardless of differences in labor productivity differences in the formation of pay for performance, or the formation of lifelong career development income disparities, will result in employees of the income gap. Therefore, investment in human capital, not only does not narrow the income gap, but will widen the income gap. Three in depth analysis of the national human capital investment on the impact of the income gap. Investment in human capital to national impact on income inequality, most national investment in human capital as a prerequisite for equality, the conclusion is the national investment in human capital will help narrow the income gap. In fact, the state underinvestment in human capital investment, but there is an equality of underinvestment and not equal, full and equal investment, investing enough but not equal four cases. Equality of national human capital investment helps to narrow the income gap, and the investment adequacy ratio underinvestment effect more pronounced.
However, the non equal national human capital investment for income gap is uncertain when the state investment in human capital tend to low income families, the state investment in human capital can effectively narrow the income gap, when the countrys human capital investment while high income families tend to State investment in human capital not only fail to narrow the income gap, but will widen the income gap, worsening income inequality, even the formation of polarization.
Therefore, the state investment in human capital for income disparity uncertainty lies in national human capital investment policies. This article is also Chinas urban households, respectively, and rural households human capital impact on income inequality, human capital investment for our national income gap an empirical study on the impact. The results showed that family income between human capital investment and there is a positive correlation between the family and our human capital investment gap is too large, and further widening income gap; Chinas non equal and high income families tend to national human capital investment, not play a national human capital investment narrow the income gap, it actually expanded the income gap.
Human Capital Investment and Income Gap
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