Accoding to the requirements of the law of market economy,we should both realize the pluralization of the main body of man power capital investment and consider the multiplying effect and that of the accelerating principle.
Through theoretical and empirical analysis, this paper finds out that the key to transformation is to raise the economic value of people, to improve human capital investment and to match the stocks of physical and human capital.
This papers offers an explanation of this fact based on a simple life-cycle model of human capital investment and timing of first birth.
The empirical analysis finds results consistent with the higher wages of late childbearers arising primarily through greater measurable human capital investment.
Implementation of this second-best insurance however distorts the human capital investment decisions when education qualifies for a low risk job.
This paper tests whether interhousehold transfers from children to parents in developing countries are motivated by altruism or intended to be repayments of implicit parental loans taken up by children for human capital investment.