Human Well-being and Educational Investment Efficiency

Abstract

Society's attitude to investments in human beings changed due to the ideas contained in the theory of human capital. Nowadays it is proved – these investments provide a production effect, the benefits for the individual and the benefits to the government. We can say that investments in the education today become tomorrow a competitive advantage. Therefore the well-being and sustainable economic development of nations depend on the human capital. That is why the paper considers human well-being and its key factors, the relationship between the human well-being and human capital, and criteria for estimation of investment efficiency in education. The quantitative analysis was carried out using dependencies between education and wages, graduates’ wages and their profession, education and unemployment. Non-monetary income from educational investments is shown in this paper. A conclusion is made about the benefits from educational investments and their impact on human well-being. It is proposed to pursue a special policy in the field of development of human resources and investments in the human capital.