Evaluation Models of Investments to Education: Application Peculiarities

Abstract

XXI century is referred to as the century of a knowl-edge economy where the competitive advantage is deter-mined not only by the size of a country, its wealthy natural resources and financial capital but also by the education and the level of accumulated knowledge of the society (Gallup, 1998). This implies the fact that economic devel-opment of a country is increasingly dependent on the in-vestments to human resources preserving and educating intellectual capital. Many foreign scientists keep on ana-lysing in what way human resources make influence on the economic development, and their works prove the impor-tance of educational investments as the factor to develop country’s economy and increase competition. Accumulated human resources turn to be the essential factor of the in-come and career perspectives of individuals, and are rele-vant when estimating the income level and its repartition. In modern economy investments to human resources are constantly increasing which causes a top issue of Return of the Investments. In many countries calculations of the educational investment indexes are being done, and according to them the earnings differentiation by age, profession and sex are explained. When analysing education and career preparation three main issues are focused on, that is the research of economic value of education and career preparation in separate enterprises; working out the relation between educational repartition, income repartition structures and optimal human resources development strategy. To solve above issue the estimation of educational investments be-comes essential. Students, their families and the govern-ment function as reasoned investors devoting their limited assets for the education only under the condition that this will bring profit. The researches are dedicated to summa-rizing the methods of income, expenses and measuring educational profitability level, and their application.