INVESTMENT IN EDUCATION: ECONOMIC CONSEQUENCES AND RATE OF RETURN
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Investment in education is widely recognized as one of the most effective drivers of economic growth and social development. Education enhances human capital, increases labor productivity, promotes innovation, and contributes to income
equality. This article examines the economic consequences of investing in education and analyzes the rate of return on educational investments at both individual and societal levels. Using theoretical frameworks and empirical evidence, the study
highlights the long-term benefits of education financing, including higher earnings, reduced unemployment, and sustainable economic development. The findings confirm that education yields high economic returns and should be considered a
strategic priority in national development policies.
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References
- Becker, G. S. (1993). Human Capital: A Theoretical and Empirical Analysis. Chicago: University of Chicago Press. Schultz, T. W. (1961). Investment in human capital. The American Economic Review, 51(1), 1–17. Psacharopoulos, G., & Patrinos, H. A. (2018). Returns to investment in education: A global update. Education Economics, 26(5), 445–458. Hanushek, E. A., & Woessmann, L. (2015). The Knowledge Capital of Nations. Cambridge: MIT Press. OECD. (2022). Education at a Glance. Paris: OECD Publishing.