Human capital investment in Lithuania: evaluating returns to education

Abstract

Investments in human capital are one of the main sources of economic growth and development. The object of the article is the investment in education in Lithuania. The aim of the article is to evaluate returns to education in Lithuania after analyzing investments in human capital. The methodology of the analysis is the scientific literature and an application of methods of net present value, payback period and internal rate of return. After evaluating the investment in education in Lithuania, it has been established that investments in education for students who do not pay contributions for studies are economically advantageous and determine the growth of their competitiveness in the labor market. Investing in education promotes personal development, the development of society and the state, productivity and competitiveness on a global scale.