Educational Attainment and Financial Well-being in Romania

Abstract

In contemporary societies, education facilitates social mobility and well-being of individuals. According to human capital theory, people who invest in themselves through education and training have improved chances of getting better jobs and gaining higher income (Becker et al., 1990; Woodhall, 1987). This paper aims to examine the effects of educational attainment on financial well-being in Romanian context. We analyse statistical data from the World Values Survey Wave 7 (sub-sample for Romania) collected from 1257 subjects. By exploring the relation between educational attainment and financial well-being, our results are relevant for better understanding the mechanisms linking human capital accumulation to monetary benefits and how these mechanisms work in relation to various individual and contextual factors.