| Title |
Evaluation of investment in human capital economical effectiveness / |
| Translation of Title |
Ekonominio investicijų į žmogiškąjį kapitalą efektyvumo vertinimas. |
| Authors |
Giziene, Vilda ; Simanaviciene, Zaneta ; Palekiene, Oksana |
| DOI |
10.5755/j01.ee.23.2.1541 |
| Full Text |
|
| Is Part of |
Inžinerinė ekonomika = Engineering economics.. Kaunas : KTU. 2012, vol. 23, iss. 2, p. 106-116.. ISSN 1392-2785. eISSN 2029-5839 |
| Keywords [eng] |
human capital ; investment in human capital ; rate of return on investment ; internal rate of return (IRR) ; short-period return on revenue |
| Abstract [eng] |
According to human capital theory the higher education is considered as an investment decision. In order to be beneficial from economic point of view and in comparison with other investment opportunities, investment in education should give a higher rate of return on investment. Knowledge about the return on investment can help to make competent decisions, which would have an economic benefit in the future. Evaluating the investment in human capital (education) as an individual decision, since the vast majority of individuals for gained education should pay themselves and only a part of the price shall be covered by the state, the rate of return on investment becomes an increasingly important evaluation criterion. Making an investment decision it is very important to allocate resources properly. For the individual the costs of this investment include poor wages and direct costs. It can be assumed that individuals with higher education will be paid more than the others without education. Thus, the investment in higher education (human capital) is useful as long as there is a positive difference between marginal benefit and marginal costs. Higher education is a guarantee of a higher life quality. But, in order to ensure the higher life quality, such main factors as individual skills and labour productivity should be eximined. [...]. |
| Published |
Kaunas : KTU |
| Type |
Journal article |
| Language |
English |
| Publication date |
2012 |
| CC license |
|
