A systems dynamic model of farmers income long term growth as human capital investment

To improve the long-term income of the farmers is a major issue in today's society which must be solved. This paper takes ChongQing as the empirical object, and studies the farmers long-term income influence factors using the System Dynamics (SD) method. The results show that investment in basic education and in occupation technical training can significantly improve farmers’ prospects. But farmers desire to invest in health care prevents immediate increase in their income. On this basis, from three aspects of rural basic education, occupation technical training and medical insurance, we build a long-term effective mechanism of farmers’ income under the perspective of human capital. © 2016, UK Simulation Society. All rights reserved.