The present research aims to analyse the investment in the education system made by Portugal in comparison with other EU countries, while also seeking to measure the returns resulting from that investment. For this purpose, the article relies on official statistics, focusing on the year 2022.

The main factor in the qualification of individuals in a given country is access to higher education. This type of education primarily aims to provide those who attend it with a higher level of training, in order to promote greater flexibility in the labour market. However, Portugal has shown results below expectations, especially when compared to other European Union countries (Dias, 2023).

This work fits into the framework of the indirect benefits associated with the Theory of Human Capital (Schultz, 1961; Becker, 1964) and numerous studies that demonstrate the positive relationship—a spillover effect—between educational levels and increasing levels of economic growth and development (Psacharopoulos and Patrinos, 2004), as well as the social and economic development resulting from other indirect and non-monetary benefits/positive externalities of education (Mucharreira et al., 2019; Wolfe and Haveman, 2001).

Regarding methodology, this research analyses the connection between public investment in education, the population’s educational attainment, and associated economic returns, comparing Portugal with other European Union countries. Using official statistics from sources such as the OECD, Eurostat, PORDATA, and DGEEC databases, the research explores indicators such as public expenditure on education and average income by education level.

The main conclusions of the study point to the low level of public investment in education in Portugal, compared to most other European countries. This lack of investment hinders the modernization of the Portuguese education system, as well as teacher remuneration, and consequently, the quality of education in the medium and long term. As for the population’s educational attainment levels, Portugal records significantly lower figures than most EU countries.

Another relevant factor in this study is the economic return on education. Although there is a positive relationship between the level of education and income in Portugal, the wage gap between education levels is substantially lower than in some European countries. This means that, in Portugal, there is no adequate wage appreciation for individuals with higher academic qualifications. Although the rate of change shows favourable percentage values, the base income remains low when compared to more than 50% of European Union countries.

Since education is a fundamental pillar for economic and social development, it is important that Portugal integrates education into its growth strategies, as is done in other EU countries.

Keywords: Education, Economics of Education, Public investment, Higher Education, Economic Development.