EDUCATION • EXPENDITURE ON EDUCATION EDUCATION • EXPENDITURE ON EDUCATION EXPENDITURE BY LEVEL OF EDUCATION EXPENDITURE BY LEVEL OF EDUCATION Expenditure on education by level US dollars, 2001 prices and PPPs Data for Hungary, Italy, Poland, Switzerland and Turkey are for public institutions only. Expenditure in national currency is converted to US dollars by PPP exchange rates. The PPP exchange rate is used because the market exchange rate is affected by many factors (interest rates, trade policies, expectations of economic growth, etc.) that have little to do with relative purchasing power of currencies in different countries. Tertiary Australia Tertiary GDP per capita 13 897 23 135 6 063 12 688 26 685 .. 10 341 24 889 7 852 11 274 28 372 Belgium .. .. 23 868 6 781 11 589 27 096 Canada .. .. 24 826 .. .. 29 290 Czech Republic 2 927 8 785 13 426 2 819 5 555 14 861 Denmark 6 515 11 499 25 830 7 865 14 280 29 223 Finland 5 238 10 900 20 992 5 733 10 981 26 344 France 5 938 7 801 23 580 6 783 8 837 26 818 Germany 5 820 9 698 23 279 6 055 10 504 25 456 Greece 2 409 3 264 14 199 3 475 4 280 17 020 Hungary 2 335 7 767 10 171 2 677 7 122 13 043 Iceland .. .. 23 564 7 010 7 674 29 036 Ireland 3 042 7 223 18 802 4 397 10 003 29 821 Italy 6 577 5 621 22 889 7 714 8 347 25 377 Japan 5 134 9 691 25 092 6 179 11 164 26 636 Korea .. … 12 780 4 406 6 618 15 916 Luxembourg .. .. 37 220 11 091 .. 49 229 Mexico 1 263 4 821 7 737 1 575 4 341 9 148 Netherlands 4 548 12 311 24 503 5 654 12 974 28 711 .. .. 19 053 .. .. 21 230 Norway 8 425 14 087 31 146 8 109 13 189 36 587 Poland 1 528 4 023 7 682 2 396 3 579 10 360 Portugal 3 052 4 664 14 939 5 065 5 199 17 912 Slovak Republic 1 467 5 250 8 987 1 681 5 285 11 323 Spain 3 775 5 624 17 637 4 870 7 455 21 347 Source Sweden 6 180 .. 22 846 6 372 15 188 26 902 OECD (2004), Education at a Glance, OECD, Paris. Switzerland 8 844 15 802 27 537 8 844 20 230 30 036 Turkey .. .. 5 994 .. .. 6 046 United Kingdom 4 941 10 981 23 006 5 324 10 753 26 715 United States 7 034 20 207 30 753 8 144 22 234 35 178 • Analytical publications US dollars, 2001 prices and PPPs OECD (2004), Higher Education Management and Policy, OECD, Paris. 20 000 • Methodological publications 15 000 5 000 OECD F FACTBOOK 2005 – ISBN 92-64-01869-7 – © OECD 2005 es d k Un ite d er St at lan ar Sw itz ay rw nm De a ra li st nd Au No s n rla y d pa Ne t he Ja lan Fin an rm m Ge ly do ng Ita Ki d te Un i d ce an y rtu ga l ar Po ng bl ic Hu pu ce Re h ec Cz ak ov OECD FACTBOOK F 2005 – ISBN 92-64-01869-7 – © OECD 2005 Gr ee pu b lan d lic 0 Sl OECD Education at a Glance: www.oecd.org/edu/eag2004. Tertiary 2001 10 000 ico UIS, OECD and Eurostat (2002), UOE Data Collection – 2002 Data Collection on Education Systems: Definitions, Explanations and Instructions, OECD, Paris. Primary, secondary 2001 25 000 OECD (2004), Quality and Recognition in Higher Education: The Cross-border Challenge, OECD, Paris. OECD (2004), OECD Handbook for Internationally Comparative Education Statistics: Concepts, Standards, Definitions and Classifications, OECD, Paris. Tertiary 1995 30 000 Re OECD (2004), Reviews of National Policies for Education, OECD, Paris. Primary, secondary 1995 35 000 Po OECD (2004), Internationalisation and Trade in Higher Education: Opportunities and Challenges, OECD, Paris. StatLink: 00.0000/000000000000 Expenditure on education by level OECD (2003), Education Policy Analysis, OECD, Paris. Fr Further information • Web sites 156 Primary, secondary and postsecondary non-tertiary education 4 846 ex At the tertiary level Denmark, Greece, Italy, Spain and Switzerland increased expenditure per tertiary student by over 20% per student in the period 1995-2001. In general however, there is a stronger trend towards decreased spending. In seven countries – Australia, Czech Republic, Hungary, Mexico, Norway, Poland and the United Kingdom – expenditure per tertiary student in real terms was lower in 2001 than in 1995. GDP per capita Austria M Expenditure per primary, secondary and postsecondary non-tertiary student increased between 1995 and 2001 by over 25% in Australia, Greece, Ireland, Poland, Portugal, Spain and Turkey. Conversely, expenditure per student in the Czech Republic and Norway declined by over 5%. For Norway, the decline in expenditure by student between 1995 and 2001 is due to a substantial change in the GDP deflator caused primarily by an increase in oil prices. In 6 out of the 23 OECD countries, changes remained within plus or minus 6% compared with 1995. Expenditure per student Primary, secondary and postsecondary non-tertiary education New Zealand Long-term trends 2001 Expenditure per student lan Expenditure on education per student at each level of education is obtained by dividing the total expenditure on educational institutions at that level by the number of full-time students (part-time students are converted to full-time equivalents). Only those educational institutions and programmes are taken into account for which both enrolment and expenditure data are available. The data on expenditure for 1995 were obtained by a special survey conducted in 2003. OECD countries were asked to collect the 1995 data according to the definitions and the coverage of a joint UNESCO-OECDEurostat data collection programme. All expenditure data have been adjusted to 2001 prices using the GDP price deflator. 1995 Ire Definition Comparability Sp ain Expenditure per student is an indicator of the investment made by countries in each student at the different level of education. StatLink: 00.0000/000000000000 157 EDUCATION • EXPENDITURE ON EDUCATION EDUCATION • EXPENDITURE ON EDUCATION PUBLIC AND PRIVATE EDUCATION EXPENDITURE PUBLIC AND PRIVATE EDUCATION EXPENDITURE Private Total Australia 4.5 1.2 5.7 4.5 1.4 6.0 Austria 5.9 0.3 6.2 5.6 0.2 5.8 .. .. .. 6.0 0.4 6.4 Canada 6.2 0.8 7.0 4.9 1.3 6.1 Czech Republic 4.7 0.7 5.4 4.2 0.4 4.6 Denmark 6.1 0.2 6.3 6.8 0.3 7.1 Finland 6.2 .. 6.3 5.7 0.1 5.8 France 5.9 0.4 6.3 5.6 0.4 6.0 Germany 4.5 1.0 5.5 4.3 1.0 5.3 Greece 3.1 .. 3.2 3.8 0.2 4.1 Hungary 4.9 0.6 5.5 4.6 0.6 5.2 Iceland .. .. .. 6.1 0.6 6.7 Ireland 4.7 0.5 5.3 4.1 0.3 4.5 Italy 4.7 .. .. 4.9 0.4 5.3 Japan 3.5 1.1 4.6 3.5 1.2 4.6 Korea .. .. .. 4.8 3.4 8.2 Luxembourg .. .. .. 3.6 0.0 3.6 Mexico 4.6 1.0 5.6 5.1 0.8 5.9 Netherlands 4.5 0.4 4.9 4.5 0.4 4.9 New Zealand 4.8 .. .. 5.5 .. .. Norway 6.8 0.4 7.1 6.1 0.2 6.4 Poland 5.7 .. .. 5.6 .. .. Portugal 5.3 0.0 5.3 5.8 0.1 5.9 Comparability Slovak Republic 4.6 0.1 4.7 4.0 0.1 4.1 Spain 4.5 0.9 5.4 4.3 0.6 4.9 The broad definition of institutions outlined above ensures that expenditure on services, which are provided in some OECD countries by schools and universities and in others by agencies other than schools, are covered on a comparable basis. Additionally, to ensure comparability over time the data on expenditure for 1995 were obtained by a special survey in 2003; expenditure for 1995 was adjusted to the methods and definitions used in the 2003 data collection. Sweden 6.1 0.1 6.2 6.3 0.2 6.5 Switzerland 5.4 .. .. 5.4 .. .. Turkey 2.3 0.0 2.3 3.5 0.0 3.5 United Kingdom 4.8 0.7 5.5 4.7 0.8 5.5 United States 5.0 2.2 7.2 5.1 2.3 7.3 Country Mean .. .. .. 5.0 0.7 5.6 OECD total .. .. .. 4.8 1.4 6.2 Belgium In principle, public expenditure includes public subsidies to households attributable for educational institutions although several countries actually include them in private expenditure. Public expenditure also includes direct expenditure on educational institutions from international sources. StatLink: 00.0000/000000000000 Expenditure on educational institutions As a percentage of GDP 1995 % Source OECD (2004), Education at a Glance, OECD, Paris. Further information OECD total 6 • Analytical publications OECD (2002), Education and Health Expenditure, and Development: The Cases of Indonesia and Peru, OECD, Paris. 4 OECD FACTBOOK F 2005 – ISBN 92-64-01869-7 – © OECD 2005 ico Au st ra lia Fr an ce Ca na da No rw ay Sw ed en De nm Un ar k ite d St at es l ex M d ga rtu ria lan Po Fin st Au lan ds Hu ng ar y Ge r m Un an ite y d Ki ng do m ain er Sp th Ne n ic pa Ja d pu bl ic lan Re h ec Cz • Web sites Ire 0 ub l UIS, OECD and Eurostat (2002), UOE Data Collection – 2002 Data Collection on Education Systems: Definitions, Explanations and Instructions, OECD, Paris. ep 2 ee OECD (2004), OECD Handbook for Internationally Comparative Education Statistics: Concepts, Standards, Definitions and Classifications, OECD, Paris. ce • Methodological publications OECD Education at a Glance: www.oecd.org/edu/eag2004. 158 2001 8 kR It should be noted that strong growth in GDP (as for example in the case of Ireland), masks the fact that there was a significant increase in real terms in spending on educational institutions in almost all of the OECD countries from 1995 to 2001. In addition, the size of the school age population shapes the demand for education and training, and national levels of teachers’ salaries also affect the share of expenditure on education. Public ov a Of the 22 countries that provided comparable data for both 1995 and 2001, only 8 countries increased their spending on education relative to GDP (Australia, Denmark, Greece, Mexico, Sweden, Portugal, Turkey and the United States). Spending by Greece and Turkey increased the most significantly although this does not include data on private spending which was not available. However these countries still spend the least on education relative to GDP out of the OECD countries for which data are available. Eleven countries decreased their spending relative to GDP over the same period (Austria, Canada, Czech Republic, Finland, France, Germany, Hungary, Ireland, Norway, the Slovak Republic and Spain) and in five of these countries expenditure as a percentage of GDP decreased by more than 10% (Canada, the Czech Republic, Ireland, Norway and the Slovak Republic). In the remaining three countries (Japan, the Netherlands and the United Kingdom) there was little if any change. Total y In 2001, OECD countries spent on average 5.6% of their GDP on education (from both public and private sources) ranging from the United States which spent 7.3% of GDP in 2001 down to Turkey’s 3.5%. Private Gr Long-term trends 2001 Public Sl The expenditure data shown here includes expenditure on instructional educational institutions as well as expenditure on non-instructional institutions that 1995 ke Definition As a percentage of GDP provide administrative, advisory or professional services to other educational institutions, although they do not enrol students themselves (e.g. national, state and provincial ministries or departments of education). Expenditure on institutions is not limited to expenditure on instructional services but also includes public and private expenditure on ancillary services for students and families, where these services are provided through educational institutions. At the tertiary level, spending on research and development can also be significant and is included in this indicator, to the extent that the research is performed by educational institutions. However, public subsidies for educational expenditure outside institutions even if it is subsidised, student living costs at tertiary level for example, are excluded. Tu r Expenditure on education is an investment that can help to foster economic growth, enhance productivity, contribute to personal and social development, and reduce social inequality. The proportion of total financial resources devoted to education is one of the key choices made in each country by governments, enterprises and individual students and their families alike. Education expenditure StatLink: 00.0000/000000000000 OECD F FACTBOOK 2005 – ISBN 92-64-01869-7 – © OECD 2005 159