Estimation of the Efficiency of Investment by Households in Financial Instruments and Human Capital

The transition from a planned to a market economy in the 90s of the last century set its pace of household economic activity in Russia. Today the solution of the issue of maintaining a decent level of well-being is a problem of the household itself exclusively. Having the opportunity to consider the process of investing outside the framework of the classical theory of economics, one can argue that financial instruments, real estate, precious metals and other tangible assets are not the only assets that can act as investment objects. In the framework of the neoclassical theory, human capital is one of the most competitive, non-copiable source that households have. Thus, there are legitimate questions: first, how to evaluate the effectiveness of household investments in financial instruments and human capital, and secondly, which of the types of household investment will be most effective? The paper analyzes ways to increase the aggregate income of households by investing in financial instruments and human capital in order to identify the most profitable investment objects. Based on the results of the analysis, it was revealed that for the given parameters (close to real ones), the most effective object of investment is human capital. It is less prone to changes in the market structure and, with proper use, can bring in income both tangible and intangible.