Review of macro-regularities about investment in social services

This paper reviews existing evidence on the relationship between investment in social services and sustainable and inclusive wellbeing. It uses key macro-indicators to assess impacts across three dimensions: economic (income, growth, employment), social (poverty and inequality), and environmental (carbon emissions and air pollution). Sustainable wellbeing implies balancing economic, social, and environmental goals, meaning that investments in social services should go beyond GDP growth and also promote social cohesion, equality, and sustainability. The study brings together evidence from European Union and OECD countries and examines whether investments in key social services are associated with positive outcomes at the macro level. The study examines four key social services across the life course: early childhood education and care, education, active labour market policies, and healthcare. Both theory and empirical evidence show that higher investment in these services leads to better employment outcomes, higher incomes, and lower poverty and inequality over the medium to long term. These effects arise because social services strengthen skills, health, and labour market participation, contributing to more resilient and inclusive societies. Evidence concerning environmental outcomes is more limited, but the review identifies promising links between social investment and environmental sustainability, particularly through emerging eco-social or green services. Overall, the findings suggest that investing in social services should not be seen as a cost, but as a strategic investment that supports sustainable and inclusive wellbeing in the long term.