Investigating the Costs of Education in the European Union

Education is the starting point of the future economic development, a precondition for achieving economic growth. Even if it doesn't represent an insurance policy in relation to the unemployment phenomenon, the education fulfills a major condition for finding a job. Among other factors, the increasing percentage of young people finishing a form of higher education and not finding a job in connection to their graduation form, or not finding a job at all, suggests a decrease in employee credibility of the diplomas and therefore a significant decrease in employment among young people. According to the Eurostat, in 2013 the unemployment rate of young people finishing a form of higher education and aged less than 29 years old was 12.7%, much higher than in 2008 when it was 7.4%. The main purpose of this study is to discuss the main factors identified in the literature that lead young people in the EU countries to attempt higher education or not. Based on the data provided by Eurostat, OECD and World Bank, the paper provides useful information regarding the cost of the education in the European Union countries. Also, a comparative analysis between Romania and European Union countries will be conducted, regarding the costs of the education, using simple regressions and Principal Component Analysis. (C) The Authors. Published by Elsevier B.V.