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Organisation for Economic Co-operation and Development (OECD) Education at a Glance Better education or lower pay
Better education or lower pay Large and often growing earning differentials In the current economic environment… …	Opportunity costs for education decline  Dominated by lost earnings, not tuition (US is exception) …	Labour-market entry becomes more difficult as young graduates compete with experienced workers …	Job prospects for less qualified deteriorate further …	Young people with lower qualifications who become unemployed are likely to spend a long time out of work In most countries over half of low-qualified unemployed 25-34-year-olds are long-term unemployed  …	Higher risks for systems with significant work-based training …	Gaps in educational attainment between younger and older cohorts likely to widen This suggests educational participation to rise further In systems where high tuition limits increased participation additional public spending can leverage additional participation and thus additional public benefits Countries without significant household spending can improve participation through widening funding base .
Relative earnings from employment for males By level of educational attainment and gender for 25-to-64-year-olds (upper secondary and post-secondary non-tertiary education= 100) 2007 or latest available year % of index A7.2a
Relative earnings from employment for femalesBy level of educational attainment and gender for 25-to-64-year-olds (upper secondary and post-secondary non-tertiary education=100) (2007 or latest available year) % of index A7.2b
Components of the private net present value for a male with higher education 27K$ 56K$ 170K$ 105K$ 35K$ 26K$ 367K$ Net present value in USD equivalent
Average relative earningsgrowthat the tertiarylevel of educationbetween 1997 and 2007 and average relative earningsat the tertiarylevel of educationdeviationfrom the OECD average (2007) A7.1
Public versus private investment for a male obtaining higher education Public costs Privatecosts Total investmentprivate+public in USD equivalent USD equivalent
Public cost and benefits for a male obtaining upper secondary or post-secondary non-tertiary education and tertiary education Public costs Upper secondary and post-secondary  non-tertiary education TertiaryEducation Public benefits Net present value, USD equivalent (numbers in orange shownegative values) A8.5 USD equivalent
Proportion of 25-34 year-olds with tertiary education employed in skilled jobs Change between 1998 and 2006 In 2006 A1.4 % %
Difference between unemployment rates of females and males, by level of education attainment (2007) Gender differences in unemployment are much smaller for those with higher qualifications Unemployment rate higher for females Unemployment rate higher for males
Supply and demand for youngindividuals(25-34 year-olds) to skilled jobs, 1998-2006 Difference in the proportion of 25-34 year-olds and 45-54 year-old cohort with below tertiary education in skilled jobs 
 Slowing demand for higher educated individuals; Preference towards younger individuals over older with below tertiary education  Increasing demand for higher educated individuals; Employers have fewer choices and must take younger, less educated workers to fill skilled positions Slowing demand for higher educated individuals; Preference towards older individuals (experience) over younger with below tertiary education  Increasing demand for higher educated individuals; Demand tends to be satisfied by existing pool of individuals with tertiary education  older  Advantage for lower-educated  younger    Slowing         Demand for higher-educated        Growing A1.5 Percentage point change in the proportion of 25-34 year-olds with tertiary education in skilled jobs between 2006 and 1998
Relationship between employment and unemployment rates for 25-64 year-olds (2007) Employment rate (%) A6.5a Unemployment rate (%)
Relationship between employment and unemployment rates for 25-64 year-olds (2007) Employment rate (%) A6.5a Unemployment rate (%)
Relationship between employment and unemployment rates for 25-64 year-olds (2007) Employment rate (%) A6.5a Unemployment rate (%)
Marginaleffects of educationon self-reportedhealth and politicalinterest Politicalinterest Health  Movingfrombelowuppersecondary to uppersecondary ALL 2003 WVS 2005 ISSP 2004/6 WVS 2005 ESS 2004 ESS 2004 Movingfromuppersecondary to tertiary ESS 2006 ESS 2006 A9.1 Yellow and blue bars show non statisticallysignificant countries
Unabated educational expansion University graduation doubled from an OECD average of 20% in 1995 to 39% in 2007 Pace of change varied widely, Finland improved its relative standing from Rank 10 to Rank 3, US dropped from Rank 2 to Rank 14 Significant expansion also of early childhood education Enrolment of 4-year-olds and under up from an average of 40% in 1998 to 71% in 2007 .
% tA1.3a Growth in university-level qualificationsApproximated by the percentage of the population that has attained tertiary-type  A education  in the age groups 25-34 years, 35-44 years, 45-54 years and 55-64 years) (2007)
Growth in baselinequalificationsApproximatedbypercentageofpersonswithuppersecondaryorequivalentqualificationsin the agegroups 55-64, 45-55, 45-44 and 25-34 years % tA1.2a
Upper secondary graduation rates (1995, 2007)Percentage of graduates to the population at the typical age of graduation (unduplicated count) % A2.1
Access to tertiary-type A education for upper secondary graduates (2007) % A2.2
Entry rates intotertiary-type A education A2.3
Averageannualgrowth in thepopulationwithtertiaryeducation (1998-2006) % A1.1
Entry rate intotertiary type A: Impact of international students (2007) % A2.5
Tertiary-type A graduation rates by gender in 2007 (first-time graduation) A3.1
Graduation rate attertiary-type A level (firstdegree): Impact of international students (2007) % A3.4
A world of change – highereducation Expenditure per student at tertiary level (USD) Cost per student Graduate supply Tertiary-type A graduation rate
A world of change – highereducation Expenditure per student at tertiary level (USD) United States Cost per student Finland Graduate supply Tertiary-type A graduation rate
A world of change – highereducation Expenditure per student at tertiary level (USD) Australia Finland United Kingdom Tertiary-type A graduation rate
A world of change – highereducation Expenditure per student at tertiary level (USD) Tertiary-type A graduation rate
A world of change – highereducation Expenditure per student at tertiary level (USD) Tertiary-type A graduation rate
A world of change – highereducation Expenditure per student at tertiary level (USD) Tertiary-type A graduation rate
A world of change – highereducation Expenditure per student at tertiary level (USD) Tertiary-type A graduation rate
A world of change – highereducation Expenditure per student at tertiary level (USD) Tertiary-type A graduation rate
A world of change – highereducation What about international students? Expenditure per student at tertiary level (USD) United States Australia A A United Kingdom Finland A Tertiary-type A graduation rate
Proportion of students who enter a tertiary programmebut leave without at least a first tertiary degree (2005) % A3.4
Expected years in education and not in education for 15-to-29-year-olds (2006) Years tC3.1a

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OECD Education At A Glance

  • 1. Organisation for Economic Co-operation and Development (OECD) Education at a Glance Better education or lower pay
  • 2. Better education or lower pay Large and often growing earning differentials In the current economic environment… … Opportunity costs for education decline Dominated by lost earnings, not tuition (US is exception) … Labour-market entry becomes more difficult as young graduates compete with experienced workers … Job prospects for less qualified deteriorate further … Young people with lower qualifications who become unemployed are likely to spend a long time out of work In most countries over half of low-qualified unemployed 25-34-year-olds are long-term unemployed … Higher risks for systems with significant work-based training … Gaps in educational attainment between younger and older cohorts likely to widen This suggests educational participation to rise further In systems where high tuition limits increased participation additional public spending can leverage additional participation and thus additional public benefits Countries without significant household spending can improve participation through widening funding base .
  • 3. Relative earnings from employment for males By level of educational attainment and gender for 25-to-64-year-olds (upper secondary and post-secondary non-tertiary education= 100) 2007 or latest available year % of index A7.2a
  • 4. Relative earnings from employment for femalesBy level of educational attainment and gender for 25-to-64-year-olds (upper secondary and post-secondary non-tertiary education=100) (2007 or latest available year) % of index A7.2b
  • 5. Components of the private net present value for a male with higher education 27K$ 56K$ 170K$ 105K$ 35K$ 26K$ 367K$ Net present value in USD equivalent
  • 6. Average relative earningsgrowthat the tertiarylevel of educationbetween 1997 and 2007 and average relative earningsat the tertiarylevel of educationdeviationfrom the OECD average (2007) A7.1
  • 7. Public versus private investment for a male obtaining higher education Public costs Privatecosts Total investmentprivate+public in USD equivalent USD equivalent
  • 8. Public cost and benefits for a male obtaining upper secondary or post-secondary non-tertiary education and tertiary education Public costs Upper secondary and post-secondary non-tertiary education TertiaryEducation Public benefits Net present value, USD equivalent (numbers in orange shownegative values) A8.5 USD equivalent
  • 9. Proportion of 25-34 year-olds with tertiary education employed in skilled jobs Change between 1998 and 2006 In 2006 A1.4 % %
  • 10. Difference between unemployment rates of females and males, by level of education attainment (2007) Gender differences in unemployment are much smaller for those with higher qualifications Unemployment rate higher for females Unemployment rate higher for males
  • 11. Supply and demand for youngindividuals(25-34 year-olds) to skilled jobs, 1998-2006 Difference in the proportion of 25-34 year-olds and 45-54 year-old cohort with below tertiary education in skilled jobs Slowing demand for higher educated individuals; Preference towards younger individuals over older with below tertiary education Increasing demand for higher educated individuals; Employers have fewer choices and must take younger, less educated workers to fill skilled positions Slowing demand for higher educated individuals; Preference towards older individuals (experience) over younger with below tertiary education Increasing demand for higher educated individuals; Demand tends to be satisfied by existing pool of individuals with tertiary education older Advantage for lower-educated younger Slowing Demand for higher-educated Growing A1.5 Percentage point change in the proportion of 25-34 year-olds with tertiary education in skilled jobs between 2006 and 1998
  • 12. Relationship between employment and unemployment rates for 25-64 year-olds (2007) Employment rate (%) A6.5a Unemployment rate (%)
  • 13. Relationship between employment and unemployment rates for 25-64 year-olds (2007) Employment rate (%) A6.5a Unemployment rate (%)
  • 14. Relationship between employment and unemployment rates for 25-64 year-olds (2007) Employment rate (%) A6.5a Unemployment rate (%)
  • 15. Marginaleffects of educationon self-reportedhealth and politicalinterest Politicalinterest Health Movingfrombelowuppersecondary to uppersecondary ALL 2003 WVS 2005 ISSP 2004/6 WVS 2005 ESS 2004 ESS 2004 Movingfromuppersecondary to tertiary ESS 2006 ESS 2006 A9.1 Yellow and blue bars show non statisticallysignificant countries
  • 16.
  • 17. Unabated educational expansion University graduation doubled from an OECD average of 20% in 1995 to 39% in 2007 Pace of change varied widely, Finland improved its relative standing from Rank 10 to Rank 3, US dropped from Rank 2 to Rank 14 Significant expansion also of early childhood education Enrolment of 4-year-olds and under up from an average of 40% in 1998 to 71% in 2007 .
  • 18. % tA1.3a Growth in university-level qualificationsApproximated by the percentage of the population that has attained tertiary-type A education in the age groups 25-34 years, 35-44 years, 45-54 years and 55-64 years) (2007)
  • 20. Upper secondary graduation rates (1995, 2007)Percentage of graduates to the population at the typical age of graduation (unduplicated count) % A2.1
  • 21. Access to tertiary-type A education for upper secondary graduates (2007) % A2.2
  • 22. Entry rates intotertiary-type A education A2.3
  • 24. Entry rate intotertiary type A: Impact of international students (2007) % A2.5
  • 25. Tertiary-type A graduation rates by gender in 2007 (first-time graduation) A3.1
  • 26. Graduation rate attertiary-type A level (firstdegree): Impact of international students (2007) % A3.4
  • 27. A world of change – highereducation Expenditure per student at tertiary level (USD) Cost per student Graduate supply Tertiary-type A graduation rate
  • 28. A world of change – highereducation Expenditure per student at tertiary level (USD) United States Cost per student Finland Graduate supply Tertiary-type A graduation rate
  • 29. A world of change – highereducation Expenditure per student at tertiary level (USD) Australia Finland United Kingdom Tertiary-type A graduation rate
  • 30. A world of change – highereducation Expenditure per student at tertiary level (USD) Tertiary-type A graduation rate
  • 31. A world of change – highereducation Expenditure per student at tertiary level (USD) Tertiary-type A graduation rate
  • 32. A world of change – highereducation Expenditure per student at tertiary level (USD) Tertiary-type A graduation rate
  • 33. A world of change – highereducation Expenditure per student at tertiary level (USD) Tertiary-type A graduation rate
  • 34. A world of change – highereducation Expenditure per student at tertiary level (USD) Tertiary-type A graduation rate
  • 35. A world of change – highereducation What about international students? Expenditure per student at tertiary level (USD) United States Australia A A United Kingdom Finland A Tertiary-type A graduation rate
  • 36. Proportion of students who enter a tertiary programmebut leave without at least a first tertiary degree (2005) % A3.4
  • 37. Expected years in education and not in education for 15-to-29-year-olds (2006) Years tC3.1a
  • 38. Overlapping of top performers in science, reading and mathematics on average in the OECD Science 9% Science and reading 0.8% Science only 1.3% Science and mathematics 2.8% Science, reading and mathematics 4.1% Reading only 5.3% Mathematicsonly 5.3% Reading and mathematics 1.4% A4.2
  • 39. Who pays for high-level qualificationsExpenditure on tertiary educational institutions as a percentage of GDP (2005) A4.5
  • 40.
  • 41. Investment in education OECD countries as a whole spend 6.1% of their GDP on education Expenditure per school student increased on average by 40% between 1995 and 2006 Mixed pattern in tertiary education Countries vary significantly in how they spend their money, different priorities on… … Salaries, learning time, teaching time, class size Room for more effective cost-sharing between government and households Even if household expenditure rose much faster than public spending in tertiary education .
  • 42. Expenditure on educational institutions as a percentage of GDP for all levels of education B2.1
  • 43. Total public expenditure on all services as a percentage of total public expenditure (2000, 2006) B4.1
  • 44. Total public expenditure on all services as a percentage of GDP (2000, 2006) B4.2
  • 45. Cumulative expenditure on educational institutions per student over primary and secondary studies (2006) Annual expenditure on educational institutions per student multiplied by the theoretical duration of studies, in equivalent USD converted using PPPs OECD average (primary and secondary) B1.4
  • 46. Changes in student numbers and expenditurePrimary, secondary and post-secondary non-tertiary education Index of change between 2000 and 2006 (2000=100, 2006 constant prices) Index of change (2000=100) B1.7a
  • 47. Contribution of various factors to salary cost per upper secondary student as a percentage of GDP per capita (2006) Percentage points B7.1
  • 48. Contribution of various factors to salary cost per primary student as a percentage of GDP per capita (2006) Percentage points B7.2
  • 49. Expenditure on educational institutions per student at various levels of education for all services relative to primary education (2006)Primary education = 100 Index 657 Level of expenditurehigherthan for primaryeducation Level of expenditurelowerthan for primaryeducation B1.3
  • 50. Who pays for tertiary qualificationsExpenditure on tertiary educational institutions as a percentage of GDP (2006) B3.2
  • 51. Expenditure on educational core services, R&D and ancillary services in tertiary educational institutions as a percentage of GDP (2006) % of GDP B6.2
  • 52. Changes in student numbers and expenditure for tertiary education Index of change between 2000 and 2006 (2000=100, 2006 constant prices) B1.7b
  • 53. Average annual tuition feescharged by tertiary-type A public institutions for full-time national students, in US Dollars converted using PPPs (school year 2006/2007) USD 5000 4000 3000 2000 1000 500 0 United States (64%, 25 110) Korea (59%, 10 844), United Kingdom1(57%, 15 447) Japan (45%, 15 022), Australia (84%, 16 070), This chartdoes not takeintoaccountgrants, subsidies or loansthatpartially or fully offset the students’ tuitionfees Canada (m, 23 329) New Zealand (72%, 10 100) Netherlands1 (58%, 15 196) Portugal, (53%, 9 724), Italy (55%, 8 738) Austria (40%, 14 001), Spain (43%, 11 342), Belgium (Fr. and Fl.) (m, m) France (m, 12 180) B5.1 Czech Republic (50%, 9 891), Denmark (59%, m), Finland (76%, 12 845), Ireland (40%, 11 832), Iceland (78%, 8 579), Norway (67%, 16 235), Sweden (76%, 16 991) 1. Public institutions do not existatthislevel of education and most of the students are enrolled in governmentdependent institutions.
  • 54. Public subsidies for education in tertiary education (2006)Public subsidies for education to households and other private entities as a percentage of total public expenditure on education, by type of subsidy B5.2
  • 55. Relationshipsbetweenaveragetuitionfees and proportion of studentswhobenefitfrom public loans and/or scholarships/grantsTertiary-type A, public institutions, academicyear 2006/07, national full-time students Bubble size shows graduation rates Averagetuitionfeeschargedbypublic institutions in USD Group 2:Potentially high financial barriers for entry to tertiary-type A education, but also large public subsidies to students. Group 3:Extensive and broadly uniform cost sharing across students, student support systems somewhat less developed. Group 4:Relatively low financial barriers to entry to tertiary education and relatively low subsidies Group 1:No (or low) financial barriers for tertiary studies due to tuition fees and still a high level of student aid. B5.3 % of studentswhobenefitfrom public loansAND/OR sholarships/grants
  • 56.
  • 58. Student mobility in tertiary education (2007)Percentage of international students in tertiary enrolments C2.1
  • 59. Distribution of foreign students in tertiary education by country of destinationPercentage of foreign tertiary students reported to the OECD who are enrolled in each country of destination (2007) C2.2
  • 60. Trends in international education market shares Percentage of all foreign tertiary students enrolled by destination Marketshare (%) Partner countries C2.3
  • 61.
  • 62. Teachers who received no appraisal or feedback and teachers in schools that had no school evaluation in the previous five years (2007-08) D5.1
  • 63. Perception of teachers of the impact of appraisal and feedback in theirschool (2007-08)
  • 64. Classroom discipline and effective learning Average percentage of lesson time spent teaching and learning Classroom disciplinary climate: mean standardised factor score D6.6
  • 65. Where teachers are satisfied with their jobs they also trust more in their effectiveness Job Satisfaction Self -efficacy: standardised factor scores D6.7
  • 66. Total number of intended instruction hours in public institutions between the ages of 7 and 14 (2007) Students in OECD countries are expected to receive, on average, 6 862 hours of instruction between the ages of 7 and 14, of which 1 580 betweenages 7 and 8, 2 504 betweenages 9 and 11, and 2 778 betweenages 12 and 14. The large majority of intendedhours of instruction are compulsory. D1.1 Total number of intended instruction time in hours
  • 67. Average class size in primary education (2000, 2007) D2.1
  • 68. Average class size in educational institutions, by level of education (2007) Number of students per classroom D2.2
  • 69. Teachers’ salaries (minimum, after 15 years experience, and maximum) in lower secondary education (2007)Annual statutory teachers’ salaries in public institutions in lower secondary education, in equivalent USD converted using PPPs, and the ratio of salary of 15 years of experience to GDP per capita Equivalent USD converted using PPPs The annualstatutory salaries of lowersecondaryteacherswith 15 yearexperience range fromlessthan USD 15 000 in Hungary and the partner countries Chile and Estonia, to over USD 52 000 in Germany, Ireland, Koreaand Switzerland and exceedsUSD 89 000 in Luxembourg. D3.2
  • 70. Changes in teachers’ salaries in lower secondary education, by point in the salary scale (1996,2007) Index of change between 1996 and 2007 (1996=100, 2007 price levels using GDP deflators) Indexof change D3.3
  • 71. Number of teaching hours per year, by level of education (2007)Net contact time in hours per year in public institutions Hours per year D4.2
  • 72.
  • 73. www.oecd.org All national and international publications The complete micro-level database Email: Andreas.Schleicher@OECD.org … and remember: Without data, you are just another person with an opinion Thank you !

Editor's Notes

  1. The pace of change is most clearly visible in college education, and I want to bring two more dimensions into the picture here.Each dot on this chart represents one country. The horizontal axis shows you the college graduation rate, the proportion of an age group that comes out of the system with a college degree. The vertical axis shows you how much it costs to educate a graduate per year.
  2. *Lets now add where the money comes from into the picture, the larger the dot, the larger the share of private spending on college education, such as tuition.The chart shows the US as the country with the highest college graduation rate, and the highest level of spending per student. The US is also among the countries with the largest share of resources generated through the private sector. That allows the US to spend roughly twice as much per student as Europe. US, FinlandThe only thing I have not highlighted so far is that this was the situation in 1995. And now watch this closely as you see how this changed between 1995 and 2005.
  3. You see that in 2000, five years, later, the picture looked very different. While in 1995 the US was well ahead of any other country – you see that marked by the dotted circle, in 2000 several other countries had reached out to this frontier. Look at Australia, in pink.
  4. Thatwasallveryquick, letusgothroughthisdevelopmentonceagain
  5. Thatwasallveryquick, letusgothroughthisdevelopmentonceagain