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Education at a Glance 2011
- 1. 1 1 Key findings from the 2011 edition of Education at a Glance Organisation for Economic Co-operation and Development (OECD) Key findings from the 2011 edition of Education at a Glance Andreas Schleicher 13 September 2011 United States September 13, 2011
- 2. 13 September 2011 Key findings from the 2011 edition of Andreas Schleicher Education at a Glance 2 2 Unabated educational expansion
- 3. 3 3 Key findings from the 2011 edition of Australia Austria Belgium Canada A world of change – higher education Chile Czech Republic 30,000.0 Denmark Estonia 1995 Finland Education at a Glance France 25,000.0 Germany Expenditure per student at tertiary level (USD) Greece Hungary 20,000.0 Iceland Cost per student Ireland Israel Italy 15,000.0 Japan Korea Andreas Schleicher 13 September 2011 Luxembourg 10,000.0 Mexico Netherland New Zealand Norway 5,000.0 Poland Portugal Slovak Republic 0.0 Slovenia 0 10 20 30 40 50 60 70 Spain Sweden Switzerland Graduate supply Turkey United Kingdom Tertiary-type A graduation rate United States
- 4. A world ofchange – higher education 30,000.0 1995 25,000.0 Expenditure per student at tertiary level (USD) 20,000.0 United States Cost per student 15,000.0 Finland 10,000.0 Japan 5,000.0 0.0 0 10 20 30 40 50 60 70 Graduate supply Tertiary-type A graduation rate
- 5. 5 5 Key findings from the 2011 edition of Australia Austria Belgium Canada A world of change – higher education Chile Czech Republic 30,000.0 Denmark Estonia 2000 Finland Education at a Glance France 25,000.0 Germany Expenditure per student at tertiary level (USD) Greece Hungary 20,000.0 Iceland Ireland Israel Italy 15,000.0 Japan Korea Andreas Schleicher 13 September 2011 United Kingdom Luxembourg 10,000.0 Mexico Netherland New Zealand Norway 5,000.0 Poland Portugal Slovak Republic 0.0 Slovenia 0 10 20 30 40 50 60 70 Spain Sweden Switzerland Turkey United Kingdom Tertiary-type A graduation rate United States
- 6. 6 6 Key findings from the 2011 edition of Australia Austria Belgium Canada A world of change – higher education Chile Czech Republic 30,000.0 Denmark Estonia 2001 Finland Education at a Glance France 25,000.0 Germany Expenditure per student at tertiary level (USD) Greece Hungary 20,000.0 Iceland Ireland Israel Italy 15,000.0 Australia Japan Korea Andreas Schleicher 13 September 2011 Luxembourg 10,000.0 Mexico Netherland New Zealand Norway 5,000.0 Poland Portugal Slovak Republic 0.0 Slovenia 0 10 20 30 40 50 60 70 Spain Sweden Switzerland Turkey United Kingdom Tertiary-type A graduation rate United States
- 7. 7 7 Key findings from the 2011 edition of Australia Austria Belgium Canada A world of change – higher education Chile Czech Republic 30,000.0 Denmark Estonia 2002 Finland Education at a Glance France 25,000.0 Germany Expenditure per student at tertiary level (USD) Greece Hungary 20,000.0 Iceland Ireland Israel Italy 15,000.0 Japan Korea Andreas Schleicher 13 September 2011 Luxembourg 10,000.0 Mexico Netherland New Zealand Norway 5,000.0 Poland Portugal Slovak Republic 0.0 Slovenia 0 10 20 30 40 50 60 70 Spain Sweden Switzerland Turkey United Kingdom Tertiary-type A graduation rate United States
- 8. 8 8 Key findings from the 2011 edition of Australia Austria Belgium Canada A world of change – higher education Chile Czech Republic 30,000.0 Denmark Estonia 2003 Finland Education at a Glance France 25,000.0 Germany Expenditure per student at tertiary level (USD) Greece Hungary 20,000.0 Iceland Ireland Israel Italy 15,000.0 Japan Korea Andreas Schleicher 13 September 2011 Luxembourg 10,000.0 Mexico Netherland New Zealand Norway 5,000.0 Poland Portugal Slovak Republic 0.0 Slovenia 0 10 20 30 40 50 60 70 Spain Sweden Switzerland Turkey United Kingdom Tertiary-type A graduation rate United States
- 9. 9 9 Key findings from the 2011 edition of Australia Austria Belgium Canada A world of change – higher education Chile Czech Republic 30,000.0 Denmark Estonia 2004 Finland Education at a Glance France 25,000.0 Germany Expenditure per student at tertiary level (USD) Greece Hungary 20,000.0 Iceland Ireland Israel Italy 15,000.0 Japan Korea Andreas Schleicher 13 September 2011 Luxembourg 10,000.0 Mexico Netherland New Zealand Norway 5,000.0 Poland Portugal Slovak Republic 0.0 Slovenia 0 10 20 30 40 50 60 70 Spain Sweden Switzerland Turkey United Kingdom Tertiary-type A graduation rate United States
- 10. 10 10 Key findings fromthe 2011 edition of Australia Austria Belgium Canada A world of change – higher education Chile Czech Republic 30,000.0 Denmark Estonia 2005 Finland Education at a Glance France 25,000.0 Germany Expenditure per student at tertiary level (USD) Greece Hungary 20,000.0 Iceland Ireland Israel Italy 15,000.0 Japan Korea Andreas Schleicher 13 September 2011 Luxembourg 10,000.0 Mexico Netherland New Zealand Norway 5,000.0 Poland Portugal Slovak Republic 0.0 Slovenia 0 10 20 30 40 50 60 70 Spain Sweden Switzerland Turkey United Kingdom Tertiary-type A graduation rate United States
- 11. 11 11 Key findings fromthe 2011 edition of Australia Austria Belgium Canada A world of change – higher education Chile Czech Republic 30,000.0 Denmark Estonia 2006 Finland Education at a Glance France 25,000.0 Germany Expenditure per student at tertiary level (USD) Greece Hungary 20,000.0 Iceland Ireland Israel Italy 15,000.0 Japan Korea Andreas Schleicher 13 September 2011 Luxembourg 10,000.0 Mexico Netherland New Zealand Norway 5,000.0 Poland Portugal Slovak Republic 0.0 Slovenia 0 10 20 30 40 50 60 70 Spain Sweden Switzerland Turkey United Kingdom Tertiary-type A graduation rate United States
- 12. 12 12 Key findings fromthe 2011 edition of Australia Austria Belgium Canada A world of change – higher education Chile Czech Republic 30,000.0 Denmark Estonia 2007 Finland Education at a Glance France 25,000.0 Germany Expenditure per student at tertiary level (USD) Greece Hungary 20,000.0 Iceland Ireland Israel Italy 15,000.0 Japan Korea Andreas Schleicher 13 September 2011 Luxembourg 10,000.0 Mexico Netherland New Zealand Norway 5,000.0 Poland Portugal Slovak Republic 0.0 Slovenia 0 10 20 30 40 50 60 70 Spain Sweden Switzerland Turkey United Kingdom Tertiary-type A graduation rate United States
- 13. 13 13 Key findings fromthe 2011 edition of Australia Austria Belgium Canada A world of change – higher education Chile Czech Republic 30,000.0 Denmark Estonia 2008 Finland Education at a Glance France 25,000.0 Germany Expenditure per student at tertiary level (USD) Greece Hungary 20,000.0 Iceland Finland Ireland Israel Italy 15,000.0 Japan Korea Andreas Schleicher 13 September 2011 Luxembourg 10,000.0 Mexico Netherland New Zealand Norway 5,000.0 Poland Portugal Slovak Republic 0.0 Slovenia 0 10 20 30 40 50 60 70 Spain Sweden Switzerland Turkey United Kingdom Tertiary-type A graduation rate United States
- 14. 14 14 Key findings fromthe 2011 edition of Australia Austria Belgium Canada A world of change – higher education Chile Czech Republic Denmark 30,000.0 United States Estonia 2008 Finland Education at a Glance France 25,000.0 Germany Expenditure per student at tertiary level (USD) Greece Hungary 20,000.0 Iceland Ireland Israel Italy 15,000.0 Japan Korea Andreas Schleicher 13 September 2011 Luxembourg 10,000.0 Mexico Netherland New Zealand Norway 5,000.0 Poland Portugal Slovak Republic 0.0 Slovenia 0 10 20 30 40 50 60 70 Spain Sweden Switzerland Turkey United Kingdom Tertiary-type A graduation rate United States
- 15. 15 15 Key findings fromthe 2011 edition of The composition of the global talent pool has changed… Countries’ share in the population with tertiary education, for 25-34 and 55-64 year-old age groups, percentage (2009) 55-64-year-old population 25-34-year-old population Education at a Glance Andreas Schleicher 13 September 2011 About 39 million people About 81 million people who attained tertiary level who attained tertiary level
- 16. 16 16 The composition of the global talent pool has changed… Countries’ share in the population with tertiary education, for 25-34 and 55-64 year- Key findings from the 2011 edition of old age groups, percentage (2009) 55-64-year-old population 25-34-year-old population Education at a Glance United United other, 14.5 States, 20.5 other, 12.9 States, 35.8 Korea, 1.6 Australia, 1.7 Korea, 5.7 Mexico, 1.8 Australia, 1.6 Andreas Schleicher 13 September 2011 Italy, 1.9 Mexico, 3.9 Spain, 2.1 Italy, 2.0 Japan, 10.9 Brazil, 3.5 Spain, 3.5 France, 3.5 Canada, 4.2 Brazil, 4.5 United France, 4.1 China, 18.3 Kingdom, 5.3 Japan, 12.4 Canada, 3.1 Germany, 6.3 Germany, 3.1 China, 6.9 United Kingdom, 4.4
- 17. 17 17 Key findings fromthe 2011 edition of …and will continue to change Share of new entrants into tertiary education in 2009 (all OECD and G20 countries) Other China, 36.6% Education at a Glance countries, 4.8% Netherlands, 0.5 % Other Portugal 0.5% Chile, 1.3% Czech Republic 0.4% Australia, 1.3% Israel 0.4% Andreas Schleicher 13 September 2011 Sweden 0.4% Italy, 1.4% Belgium 0.4% Spain, 1.6% Hungary 0.4% Poland, 2.1% Austria 0.4% New Zealand 0.3% Germany, 2.5% United Switzerland 0.3% States, 12.9%Slovak Republic 0.3% Argentina, 2.7% Denmark 0.2% Korea, 3.1% Norway 0.2% Ireland 0.2% Mexico, 3.1% Russian Finland 0.2% Federation, 10.0 Slovenia 0.1% United % Estonia 0.1% Kingdom, 3.3% Japan, 4.2% Indonesia, 4.9% Iceland 0.0% Turkey, 3.7%
- 18. 18 18 Key findings fromthe 2011 edition of …as also visible in the current output of schools Share of upper secondary graduates in 2009 (all OECD and G20 countries) Other China, 42.6% Education at a Glance countries, 3.8% Chile, 0.6% Other Netherlands, 0.7 Belgium 0.4% % Portugal 0.4% Argentina, 0.9% Czech Republic 0.3% Australia, 1.0% Hungary 0.3% Israel 0.3% Andreas Schleicher 13 September 2011 Spain, 1.0% Sweden 0.3% Canada, 1.1% Austria 0.3% Poland, 1.4% Switzerland 0.2% Slovak Republic 0.2% Italy, 1.5% Finland 0.2% Turkey, 1.6% United Norway 0.2% States, 9.9% Korea, 1.7% New Zealand 0.2% United Denmark 0.2% Kingdom, 2.2% Brazil, 7.3% Ireland 0.2% Germany, 2.5% Slovenia 0.1% France, 2.8% Estonia 0.0% Indonesia, 6.1% Mexico, 2.8% Iceland 0.0% Russian Luxembourg 0.0% Japan, 3.4% Federation, 5.2%
- 19. 19 19 Key findings fromthe 2011 edition of Education at a Glance The increase in the number of knowledge workers has not led to a decrease in their pay Andreas Schleicher 13 September 2011 …which is what happened to low-skilled workers
- 20. Components of theprivate net present value for a man with higher 20 20 education (2007 or latest available year) Key findings from the 2011 edition of Direct cost Foregone earnings Income tax effect Social contribution effect Transfers effect Grosss earnings benefits Unemployment effect Portugal 373,851 Education at a Glance United States 323,808 Italy 311,966 Korea 300,868 Ireland 253,947 Czech Republic 240,449 Hungary 230,098 Slovenia 225,663 Poland 215,125 United Kingdom 207,653 Canada 175,670 OECD Average 175,067 Austria 173,522 Andreas Schleicher 13 September 2011 Germany 147,769 France 144,133 Japan 143,018 Finland 135,515 Net Belgium 115,464 present Netherlands 112,928 value in Australia 100,520 Spain 95,320 USD Norway 92,320 equ. New Zealand 74,457 Turkey 64,177 Sweden 62,481 Denmark 55,946 -400,000 -200,000 0 200,000 400,000 600,000 800,000 USD equivalent C hart A9.3
- 21. 13 September 2011 Key findings from the 2011 edition of Andreas Schleicher Education at a Glance 21 21 20,000 30,000 40,000 50,000 60,000 10,000 0 Luxembourg USD Chart A10.4 United States Austria Ireland Netherlands Australia United Kingdom Canada Korea Norway Germany Italy Sweden OECD Average Czech Republic New Zealand Denmark Finland Iceland France Belgium Spain Net income (Purchasing Power Parity-adjusted) Israel Slovenia education (2009 or latest year available) Portugal Greece Slovak Republic Hungary Net income in USD for 25-64 year-olds with a tertiary Poland Estonia
- 22. 13 September 2011 Key findings from the 2011 edition of Andreas Schleicher Education at a Glance 22 22 Taxpayers are getting a good return too
- 23. Public cost andbenefits for a man obtaining tertiary education 23 23 Key findings from the 2011 edition of (2007 or latest available year) Public benefits Public costs United States 193,584 Germany 168,649 Belgium 167,241 Hungary 166,872 Education at a Glance Slovenia 155,664 Finland 100,177 United Kingdom 95,322 Netherlands 95,030 Poland 94,125 OECD Average 91,036 Austria 89,705 Portugal 89,464 Korea 89,034 Ireland 85,917 Andreas Schleicher 13 September 2011 Australia 84,532 Italy 82,932 Czech Republic 81,307 Canada 79,774 Japan 67,411 France 63,701 Net present Norway 43,419 value New Zealand 46,482 Sweden 37,542 Spain 29,582 Denmark 28,621 Turkey 21,724 Chart A9.5 0 50,000 100,000 150,000 200,000 250,000 In equivalent USD
- 24. 24 24 Key findings fromthe 2011 edition of Education at a Glance The crisis hit the least educated hardest Andreas Schleicher 13 September 2011 The unemployment rate for 15-29 year-olds increased, on average, from 10.2% to 13.5% Lack of relevant skills/experience brings higher unemployment risk for recent entrants to the labour force
- 25. 25 25 Key findings fromthe 2011 edition of When the crisis hit Percentage-point change between 2008-09 in unemployment rate for 15-29 year-olds 2008 2009 Below upper secondary Tertiary education (%) education (%) Spain Spain Education at a Glance Estonia Estonia Turkey Turkey Ireland Ireland Slovak Republic Slovak Republic United States United States Greece Greece Hungary Hungary Portugal Portugal Canada Canada Finland Finland Israel Israel Germany Germany Chile Chile Poland Poland Andreas Schleicher 13 September 2011 Brazil Brazil France France OECD average OECD average Belgium Belgium Sweden Sweden Japan Japan Italy Italy Slovenia Slovenia Czech Republic Czech Republic Denmark Denmark Mexico Mexico Australia Australia New Zealand New Zealand Korea Korea Austria Austria United Kingdom United Kingdom Luxembourg Luxembourg Switzerland Switzerland Netherlands Netherlands Norway Norway C3.1 - 10 20 30 40 - 10 20 30 40
- 26. 13 September 2011 Key findings from the 2011 edition of Andreas Schleicher Education at a Glance 26 26 Who pays for what, when and how?
- 27. Average annual tuitionfees charged by tertiary-type A public 27 27 Key findings from the 2011 edition of institutions for full-time national students (academic year 2008- USD 09) United States (70%, 29 910) 6000 Education at a Glance Korea (71%, 10 109) 5000 United Kingdom1 (61%, 15 314) Japan (49%, 16 533), Australia (94%, 16 297), 4000 Canada (m, 24 384) This chart does not take into account grants, New Zealand (78%, 11 125) subsidies or loans that 3000 Andreas Schleicher 13 September 2011 partially or fully offset the students’ tuition fees 2000 Netherlands (63%, 17 245) Portugal (84%, 10 373), Italy (50%, 9 556), 1000 Spain (46%, 13 928), Austria (54%, 15 081), Switzerland (41%, 23 284) Belgium (Fr. and Fl.) (m, m) 500 France (m, 14 945) Chart 0 Czech Republic (59%, 8 738), Denmark (55%, 17 634), Finland (69%, 15 402), Ireland (51%, 16 284), B5.2 Iceland (77%, 10 429), Mexico (35%, 7 504), Norway (77%, 18 942), Sweden (68%, 20 864) 1. Public institutions do not exist at this level of education and most students are enrolled in government-dependent private institutions.
- 28. 28 28 Key findings fromthe 2011 edition of Average tuition fees and proportion of students who benefit from public loans and/or scholarships/grants Tertiary-type A, public institutions, academic year 2008/09, national full-time students Bubble size shows 7000 graduation rates Group 2: Group 3: Potentially high financial barriers Education at a Glance Average tuition fees charged by public institutions in USD Extensive and broadly uniform cost for entry to tertiary-type A United States 6000 across students, student sharing education, but also large public support systems somewhat less subsidies to students. developed. Japan 5000 4000 Australia Group 4: Group 1: Andreas Schleicher 13 September 2011 3000 Relatively low financial barriers to No (or low) financial barriers New Zealand entry to tertiary education and relatively low subsidies for tertiary studies due to tuition fees and still a high level 2000 of student aid. Italy Netherlands Switzerland Spain 1000 Austria Belgium (Fl.) Sweden Belgium (Fr.) Finland Danemark 0 France Norway Mexico Iceland 1000 0 Chart B5.1 25 50 75 100 % of students who benefit from public loans AND/OR sholarships/grants
- 29. 13 September 2011 Key findings from the 2011 edition of Andreas Schleicher Education at a Glance 29 29 B7.1 -4,000 -2,000 2,000 4,000 0 Chart Switzerland using PPPs Spain In equivalent USD Denmark Belgium (Fl.) Portugal Belgium (Fr.) Germany Greece Netherlands Ireland Austria Japan Norway Australia France United Kingdom Korea Contribution of teaching time Difference with OECD average United States Contribution of teachers' salary Contribution of instruction time Iceland Contribution of estimated class size Italy New Zealand Finland Slovenia Israel per upper secondary student (2008) Czech Republic Poland Hungary Turkey Estonia Contribution (in USD) of various factors to salary cost Chile
- 30. 30 30 Key findings fromthe 2011 edition of Relationships between performance in science and total science learning time (PISA 2006) Score More total learning time does not 600 necessarily mean better performance … Education at a Glance Finland 550 New Zealand Estonia Canada Switzerland Australia Netherlands Slovenia Japan Austria Belgium Germany Korea United Kingdom Czech Republic Hungary 500 Ireland Sweden France Denmark Poland Iceland United States Spain Russian Federation Luxembourg Norway Andreas Schleicher 13 September 2011 Slovak Republic Italy Portugal Greece Israel 450 Chile Turkey Mexico 400 Argentina Brazil Indonesia R²=0,02 350 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 Box D1.2 Total science learning time (hours per week)
- 31. Relationships between performancein science and relative learning 31 31 Key findings from the 2011 edition of time in regular school science lessons (PISA 2006) (Share of learning hours in regular school lessons out of total science learning time) Score …while the higher the percentage of 600 students’ total learning time spent Education at a Glance during normal school hours, the better countries perform. Finland 550 New Zealand Estonia Canada Japan Netherlands Australia Slovenia Germany Korea Austria United Kingdom Hungary Switzerland Belgium Czech Republic 500 Luxembourg Sweden Poland United States Norway Russian Federation France Denmark Spain Slovak Republic Iceland Italy Andreas Schleicher 13 September 2011 Greece Portugal 450 Israel Ireland Chile Turkey Mexico 400 Brazil Indonesia Argentina R²=0,50 350 45 50 55 60 65 70 75 80 Share of learning hours in regular school lessons out of total science learning time (%) Box D1.2
- 32. 13 September 2011 Key findings from the 2011 edition of Andreas Schleicher Education at a Glance 32 32 0 1 2 Spain Portugal Luxembourg Korea Chart D3.1 Germany Denmark Finland Belgium (Fl.) Scotland Ireland Belgium (Fr.) Australia France Estonia England Slovenia Netherlands OECD average educated workers Teachers’ pay Sweden latest available year) Israel Teachers fare better than tertiary- Poland Norway Italy Austria United States educated workers Czech Republic Iceland Hungary Teachers fare worse than tertiary- Slovak Republic full-time, full-year workers with tertiary education aged 25 to 64 (2009 or Ratio of salary after 15 years of experience/minimum training to earnings for
- 33. 33 33 Key findings fromthe 2011 edition of Education at a Glance Lifelong learning is becoming a reality… …but not for all Andreas Schleicher 13 September 2011 Those who need it most get the least of it
- 34. 13 September 2011 Key findings from the 2011 edition of Andreas Schleicher Education at a Glance 34 34 500 0 2,000 2,500 1,000 1,500 Hours Denmark Chart C5.1 Sweden Finland Norway Austria Germany Belgium Switzerland OECD average Netherlands Czech Republic Estonia Slovak Republic Spain Canada All non-formal education United States Portugal Job-related non-formal education United Kingdom Korea formal education (2007) New Zealand Poland Slovenia Greece Italy Hungary Expected hours over the working life in all Turkey non-formal education and in job-related non-
- 35. 13 September 2011 Key findings from the 2011 edition of Andreas Schleicher Education at a Glance 35 35 20 40 60 80 120 140 100 0 C5.3 Hours of Chart instruction Denmark Hungary Belgium Austria Spain Norway Finland Portugal Not attained ISCED 3 Greece Poland OECD average Sweden Germany Netherlands Czech Republic Attained ISCED 3/4 Canada Switzerland Turkey Slovak Republic related non-formal education, Estonia by educational attainment (2007) United States Korea Attained ISCED 5/6 New Zealand United Kingdom Italy Hours of instruction per employed participant in job- Slovenia
- 36. 13 September 2011 Key findings from the 2011 edition of Andreas Schleicher Education at a Glance 36 36 More Information… www.oecd.org/edu/eag2011
Editor's Notes
- #3 The first thing you see is a dramatic expansion of higher education.
- #4 This chart shows you the college graduation rate on the horizontal axis, and how much countries invest per college student each year. Each dot is one country.
- #14 This shows you both how rapidly education systems have expanded but also how much the pace of change has differed across countries. The United States, that was the benchmark for higher education output in 1995, is now an average performer because so many countries have expanded higher education so much faster.In fact, if you followed this chart closely, you will see that, while most countries have moved towards the right, towards more people completing degrees, the US has primarily moved upwards, becoming more expensive.
- #15 You can see this here once more.
- #16 The expansion of higher education has had significant implications on the global talent pool (here 36 countries with comparable data). Among the age group nearing retirement, there are 39 million with a tertiary qualification. Among the age group entering the labour-force, it is 81 million.
- #17 But while in the older age group every third person in global talent pool was in the United States, it is only every fifth in the younger age group. China’s share of this global talent pool has expanded from less 7% among the older age group to 18% among those who have just entered the labor market – just 2 percentage points below that of the U.S. In sum, the US still has one of most highly educated labour forces in the OECD area. With 41% of the adult population having attained a tertiary degree, the US ranks among the top five countries on this measure, and has over 10 percentage points more of its labour force with this level of education than the OECD average (30%). But much of this advantage stems from a high educational level among older age groups. The US, together with Germany and Israel, are the only countries where attainment levels among those about to leave the labour market (55-64 year-olds) are similar to those who have just entered the labour market (25-34 year-olds). This is why the picture looks very different among younger age groups. Among those 25-34 year-olds who have recently entered the labour market, the US ranks 15th among 34 OECD countries in tertiary attainment (Table A1.3a). Similarly, the rate of graduation from tertiary education has increased in the US from 42% in 2000 to 49% in 2009, but the pace of the expansion has been more rapid in other countries: on average across OECD countries, graduation rates have increased from 37% to 47%. Graduation rates from longer, theory-based programmes (tertiary-type A) and advanced research programmes in the US stand at the OECD average of 38% (Table A3.2).
- #18 When you ahead into the future output of education systems, by comparing the number of people who are entering higher education, you can see even more dramatic changes.
- #19 And the picture becomes even more pronounced when you look at the number of high school graduates across countries, which represent the future pool of potential university entrants.
- #20 Tertiary education brings substantial economic benefits to individuals. On average across OECD countries, a person with a tertiary education can expect to earn over 50% more than a person with an upper secondary education. This premium is 79% in the U.S., among the highest in the OECD area (ranked 6 of 34) and provides a solid incentive for completing higher levels of education. The penalty for not completing high school is particularly severe in the US: someone who has not completed an upper secondary education can only expect to receive 64% of a high school graduate’s earnings (77% on average across OECD countries). Education thus determines access to well-paid jobs more in the US than in other OECD countries. As in most other countries, the earnings premium for those with higher education has been increasing over the past decade, suggesting that, in the US, the supply of tertiary-educated workers has not kept up with demand. The earnings premium has increased from 66% in 1999 to 79% in 2009, and the pace of the increase appears to be have intensified by the current economic crisis (Table A8.2a).
- #22 While labour costs for higher-educated workers are high in the US, employer contributions, income taxes and social contributions need to be paid and net income is lower. An experienced (45-54 year-old) tertiary educated individual can expect to keep 55% of the labour costs as net income (the same as the OECD average); whereas someone of that age who has not attained an upper secondary education keeps 64% (a bit more than the OECD average of 62%). In New Zealand, Israel and Korea, higher-educated individuals keep more than 70% of labour costs (Chart A10.1). High earnings, average tax rates and relatively inexpensive labour (costs) in lower skills segments make the US an attractive place to live for someone with a higher education. The net purchasing power (income) for those with a higher education is the highest among OECD countries, with the exception of Luxembourg. A higher-educated individual has a net spending power of USD 52,000 per year in comparison with USD 32,000 on average in OECD countries. Someone with an upper secondary education, working full time, has a net income of USD 33,000 (the OECD average is USD 23,000), and a full-time worker who has not attained an upper secondary education can expect a net income of USD 23,000 (the OECD average is USD 19,000). The highest net earnings among those with low levels of education are found in Australia, Ireland, Luxembourg, the Netherlands and Norway, where an individual who has not attained an upper secondary education can expect to earn (PPP) USD 25 000 per year (Chart A10.5).
- #23 The additional taxes and social contributions paid by tertiary graduates make investment in this level of education very profitable, from the public perspective.
- #24 The net gain over the working life of a tertiary-educated man in the US is above USD 190,000 – the highest in the OECD area and well above the OECD average of USD 91,000. Among tertiary-educated women in the US, the net gain is close to USD 90,000, also well above the OECD average of USD 55,000. These high returns to taxpayers are largely seen in income taxes paid by tertiary graduates, who have a particularly large earnings premium in the US. In addition, the public share of the direct costs for higher education is among the lowest in the OECD area. Further expanding higher education to meet labour-market demands thus makes good economic sense from a public perspective (Table A9.4).
- #25 Education is generally good insurance against unemployment and for staying employed in difficult economic times, and this has been particularly true in the US.
- #26 Since the start of the recession in 2007, employment rates among those who have not completed high school have dropped by almost 6 percentage points, and stand at 52.5%. In comparison, employment rates among those with tertiary education declined by only 2.5 percentage points, and the overall employment rate is still above 80% (80.8%), over 28 percentage points higher than for those without a high school degree (Table A7.3a).Unemployment rates for those without a high school education have shot up to 15.8% in 2009, more than 4 percentage points above the OECD average. Some 9.8% of those who have completed high school are unemployed (3 percentage points above OECD average), while unemployment rates has stayed below 5% (4.9%) for college graduates, which is just half a percentage point above the OECD average (A7.4a). The proportion of individuals employed in full-time jobs tells a similar story: only 58% of those without an upper secondary education are employed full-time (the OECD average is 66%); 69% of those with an upper secondary education are in full-time employment (the OECD average is 72%); and 76% of those with a higher education are in full-time jobs (the OECD average is 75%) (Table A7.5).As a result, the job market in the US is thus particularly difficult for those without a college degree. Higher-educated individuals have fared substantially better in this recession and face a job market that is no worse, on average, than in other OECD countries.
- #27 Higher education is costly, and direct costs, such as tuition fees, are the highest in the US in the OECD area.
- #28 On average, a graduate can expect to spend USD 70,000 in direct costs (the OECD average is USD 11,000) and lose an additional USD 39,000 in earnings foregone while in studies. The US and Japan are the only countries where the total investment costs exceed USD 100,000. On average across OECD countries, an individual can expect to invest USD 50 000 to acquire a tertiary qualification, when direct and indirect costs are taken into account (Table A9.3).While the public side can expect to receive these average returns, outcomes for educated workers can vary greatly, and thus investing in higher education carries substantial financial risk for the individual. The risk of a poor earnings outcome for a highly educated worker is relatively high in the US, where 13% of those with a higher education earn half or below half of the median salary. Only Austria, Canada and Germany have larger proportions of higher-educated workers in this low-income group (Chart A8.4).Because of the differences in risk, there is a case to be made for assisting individuals in financing their education, as the investment is essentially risk-free on the public side and governments can typically borrow at a lower rate than individuals. The possibility of transferring lower government borrowing costs to the individual can, in many instances, make a substantial difference to the value of education due to lower discount rates.
- #29 Because of the large investment and uncertainty in outcomes, the decision to continue education at the tertiary level is a difficult one to take in the US, particularly for young individuals from less-affluent backgrounds. To alleviate the financial burden, most countries provide loans and grants to students. Income-contingent loans and loans with low interest rates are important, as they bring more people into higher education, reduce risk, and provide access to education while still maintaining students’ stake in their own investment and keeping direct costs for education under control.Despite the high private costs for education, public subsidies for financial aid to students in the US are similar to that of other OECD countries. In the US, 20.3% of public expenditure is channelled to financial aid, compared with the OECD average of 19.4% (Table B5.1). Some 15.5% of these subsidies are geared towards scholarships and grants (the OECD average is 11.4%), and only 4.8% of public expenditure is directed towards student loans (the OECD average is 8.9%).
- #33 The US may also face difficulties with attracting the best students to the education profession. In absolute terms, teachers are fairly well paid from an international perspective, but earn substantially less than their peers with similar education backgrounds. The starting salary for a teacher in primary education is USD 36,502 compared with USD 29,767 on average across the OECD. Salary scales are typically less steep than in other countries. The earnings advantage compared with other countries is reduced in upper secondary education, where a teacher with minimum training at the top of the scale can expect to earn USD 54 666 compared with USD 53 651 on average in the OECD area (Table D3.1).However, in the US, an upper secondary teacher with 15 years of experience can expect to receive only 65% of the earnings of a tertiary-educated individual working in another profession, a proportion substantially below that observed in other OECD countries (85%). The relatively low wages for teachers in primary, secondary, and upper secondary education compared with the earnings of people with similar educational backgrounds in other occupations suggests that salaries alone will not attract the most talented students to the education profession in the US (Table D3.2).
- #35 Labour-force skills are acquired both during and beyond initial education, and providing access to education and training throughout the working life is becoming increasingly important for maintaining a competitive edge and keeping people employed. A substantial portion of the adult population is educated and trained each year. Close to 50% of the adult population in the US receives some education and training during a year, which is well above the OECD average of 40% and more than in Canada, Denmark and Germany (Table C5.3a).But fewer adults participate in job-related training (non-formal education) than in other OECD countries, and only 9% of those who have not attained an upper secondary education receive this type of training. The expected number of hours of job-related training over the working life is below the OECD average across all educational levels; and those without an upper secondary education can expect to receive only a third as many hours of job-related training as individuals with a similar level of education receive in other OECD countries (Table C5.1b.).