Child Well-being in Transition Countries as an Intergenerational Investment in the Development of Human Capital

This article proposes methods applicable for analysing intergenerational investment in human capital in 28 transition economies in Central and Eastern Europe and Central Asia, and the relationships among the economic performance of countries and their investments in the next generation’s human capital. As determinants, we introduce macroeconomic and demographic variables into our analysis. We hypothesize that the countries with better economic well-being invest more in their future human capital, measured by their child well-being indicators. The results indicate a significant and negative relationship between the present development status and deterrents of child well-being, as well as a positive relationship between economic development and positive child well-being. The article argues that the economic performance is not the only relevant determinant of intergenerational investment in human capital development.