Today investment in education is one of the most important factors of the development in any modern country. Our paper finds out of the points of human capital and analyses the proceeds of investment in education. Investment in education is a necessary investment that certifies higher productivity in the economy. To measure the proceeds on the educational investment, the cost-benefit analysis is usually used including the calculation and assessment of all the relevant costs and benefits. Estimations show that the return on the investment in education is higher than that on the investment in physical capital. Investment on education has both private and public returns-individual and social. Individuals with more human capital manage to be very efficient at their employment search, and less suffer from unemployment. Most educated people have high labor productivity that effects on the profit of the firm and its market evaluation. Due to investment in education the profit recently, the macro-economic situation in most EU countries has changed significantly. At the EU level, in 2004 the main components of public spending were social protection, general public services and health, and education. It can change the priority set by an economy. It can reflect country-specific objectives in spending spheres. In 2005 nearly 90% of investment in education at European level was covered by public sources. All these transactions are included in the indicator on public investment as a percentage of Gross Domestic Product. There are many variations between European countries in this point. In 2005 percentage of GDP was higher than the EU average in 2004. Public investment on education can suggest a complementary outline on the public effort made by a country to support its educational system. Many European countries are trying to increase the public investment on education lately. In some countries (Romania, Hungary or Cyprus) the public sources allocated to education shown in comparative PPS have witnesses significant increases between 2000 and 2005 (over 10% annually). High standard annual increases in the absolute figures of public investment on education between 2000 and 2005 were noted as well in Ireland and Greece and in more than half of the Members States the standard increase was at least 5% annually.

1.2.Private investment on education

Private investment on education is becoming important in Europe. Between 2000 and 2005 in almost all countries the private sources of funding for all compound levels of education have increased. In some countries (Finland Sweden) educational structures continue to be mostly financed from public sources and less than 5% is covered from private sources for another group of countries ( France, Italy, Lithuania, Poland) private sources of investment accounted for about 10% of total investment on educational institutions. In four member states (the UK, Germany, Cyprus, Slovakia) the investment in education from private sources was 16-20%. The evolution which is available at country level clearly describes the role of the indicators used in the model, thus other variations across countries can play a role in explanations of the results. Productivity of investment in education can be affected by different specific factors. More often these factors are beyond the control of public authorities but they are important in the analysis and neglecting them may lead to angled measures of efficiency. For example, the educational competence of adult population could influence the educational outcomes. Investment in education is beneficial in a variety of ways, both for individuals and for society as a whole. Secondary education has been displayed to contribute to individual returns and economic development. It is associated with advanced health, equity and social conditions. And the quality of secondary education affects the levels above and below it primary and terrier education. Education in enhances individual productivity, as measures by the well-known link between educational competence and personal income. At the national level education plays an important role in cherishing economic development.