First, using the perpetual inventory method, following Barro and Lee (1997), we
constructed the average years of schooling attainment for the population age 15 to 64.6 Figure
3 shows the human capital stock series we constructed over the period 1952-1999. We found
that there is a rapid accumulation of human capital for the working population. The sharp
increase of the human capital stock for the period 1976-1980, perhaps reflects the recovery
from the distorted education system caused by the Cultural Revolution (1966-1976) to a
normal education system. However, human capital accumulation slowed down in the reform
period since 1978, with its annual growth rates declined from 5.3% before the reforn to 2.7%
after the reform.
Second, using a simple growth accounting framework incorporating human capital, we
found that human capital contributed positively and significantly to economic growth, in both
pre-reforn and reform periods. Keeping other factors constant, human capital accumulation
accounted for 32.8% of the growth in the pre-reformn period, and 13.8% of the growth in the
reform period. This implies that when the economy was closed and policies were distorted in
the pre-reform period, the accumulation of human capital had played a more important role in
supporting growth, together with accumulation of physical capital. In the reform period, the
gro,.;,-Pi of totai fiacoi7 productivity played a nofe- important role. For methodology sc_. imnex