Investment in Education and the Question of Return: A Socio-Statistical Analysis of Higher Education Financing in Algeria (2000–2025)

Abstract

This study examines the relationship between public investment in education and its socioeconomic returns within the Algerian higher education system from 2000 to 2025. Using a socio-statistical approach, the research analyzes longitudinal data on education expenditure, enrollment trends, graduate employability, and national economic indicators to assess the efficiency and equity of higher education financing. The findings reveal a persistent gap between the quantitative expansion of higher education—reflected in increased funding, infrastructure, and student enrollment—and the qualitative outcomes in terms of labor market absorption, innovation, and national productivity. Despite sustained state investment, the rate of return on educational spending remains limited due to structural inefficiencies, labor market mismatch, and the dominance of a rent-based economic model. The study highlights the need for a strategic reorientation of education financing policies towards performance-based funding, stronger university–industry linkages, and a comprehensive evaluation framework that integrates both social and economic returns. These insights aim to contribute to policy debates on optimizing educational investment to foster sustainable human capital development in Algeria.