Research on the Contribution Mechanism of Vocational Human Capital Characteristics to Income

Abstract

Vocational education is an important way to accumulate human capital. Human capital is the core element of economic growth and has huge positive externalities. Building a scientific and effective human capital development system is an important driving force to improve workers’ living standards and promote innovative development. Based on statistical techniques such as Lasso dimensionality reduction, stepwise regression, and partial least squares, as well as on the 2012–2016 China Labor Force Dynamics Survey (CLDS), this paper studies the impact of human capital on workers’ wage income and capital income, and establishes an income-determining equation that can be used for interpretation and forecasting. The empirical results show that education, professional skills, health, and communication ability are important components of human capital and are significantly positively correlated with income. China should build a good and effective human capital development system to increase workers’ income and narrow the income gap among residents.