Home  Journals  National Interests: Priorities and Security  4(373) - 2019 April

Social externalities of educational investments: Experience of OECD member countries

Received: 24 January 2019

Received in revised form: 11 February 2019

Accepted: 28 February 2019

Available online: 15 April 2019

Subject Heading: NATIONAL INTERESTS

JEL Classification: E21, F63, H52, J24, I25

Pages: 629–647

https://doi.org/10.24891/ni.15.4.629

Subject The article addresses investment in education as a key condition of socio-economic development of the society and individuals’ well-being.
Objectives The study aims to identify, compare, and summarize information about explicit and implicit social externalities that stem from the level of education of a person and change as it increases.
Methods We review the international statistical data and use the methods of comparison, theoretical analysis and synthesis, abstraction, induction, classification, and analogy.
Results The paper describes the underinvestigated forms and the degree of intensity of externalities associated with investments in education. It shows the impact of the level of education (primary, secondary, higher) of people aged 25 to 64 years in various OECD member countries on the subjective value judgments about health status, limitations in physical activity due to health problems, satisfaction with life in general, propensity toward depression.
Conclusions and Relevance We revealed potential reasons for differences in obtained results for various OECD member countries, and for males and females. The paper substantiates the importance of identified patterns for the prospects of Russia's socio-economic development and for supporting decisions on the scale and forms of investment in education.

Keywords: education, investment, externality, health, life satisfaction

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