tertiary education, as a tool to promote productivity and jobs in europe fabienne ilzkovitz dg...
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Tertiary education, as a Tertiary education, as a tool to promote tool to promote
productivity and jobs in productivity and jobs in
EuropeEurope
Fabienne Ilzkovitz Fabienne Ilzkovitz DG ECFIN, European CommissionDG ECFIN, European Commission
Conference on Conference on
““Quality of tertiary education and the Quality of tertiary education and the economic policy agenda”economic policy agenda”
April 2April 2ndnd 2008 2008
22
OverviewOverview
Why is investment in tertiary Why is investment in tertiary education important? education important?
Do we invest sufficiently in Do we invest sufficiently in tertiary education? tertiary education?
Efficiency and effectiveness Efficiency and effectiveness of public spending in tertiary of public spending in tertiary education education
33
Why is investment in tertiary Why is investment in tertiary education important? education important? Efficiency and EquityEfficiency and Equity
Driver of productivity and Driver of productivity and growth growth
Tool to maximise the Tool to maximise the opportunities of opportunities of globalisation globalisation
Equip people to minimise Equip people to minimise adjustment costsadjustment costs
44
Why is investment in Why is investment in tertiary education tertiary education
important? important? Efficiency and EquityEfficiency and Equity
Driver of productivity and Driver of productivity and growthgrowth
Tool to maximise the Tool to maximise the opportunities of opportunities of globalisation globalisation
Equip people to minimise Equip people to minimise adjustment costsadjustment costs
55
ProductivityProductivity growth growth
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.51965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
US
EU-15
10 years sliding average annual growth rate
A 1 year increase in average educational attainment of the workforce tends to increase productivity by app. 7-10%
66
Why is investment in tertiary Why is investment in tertiary education important? education important? Efficiency and EquityEfficiency and Equity
Driver of productivity and Driver of productivity and growth growth
Tool to maximise the Tool to maximise the opportunities of opportunities of globalisationglobalisation
Equip people to minimise Equip people to minimise adjustment costsadjustment costs
77
Innovation and Innovation and tertiary education tertiary education
Source: Eurostat / Commission services.EE, LU, RO: no data on expenditure available
ATBE
BG
DEDK
FI
FR
LT
LV
HU
SI
ESMT
US
JP
IT
IE
SE
CZ CY
ELPL
PT
NL
SK
EU
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 20 000
Annual expenditure on public and private educational institutions per student in EUR PPS, at tertiary level of education (ISCED 5-6), based on full-time equivalents
Sum
mar
y In
nova
tion
Inde
x 2
007
88
Why is investment in tertiary Why is investment in tertiary education important? education important? Efficiency and EquityEfficiency and Equity
Driver of productivity and Driver of productivity and growth growth
Tool to maximise the Tool to maximise the opportunities of opportunities of globalisation globalisation
Equip people to minimise Equip people to minimise adjustment costsadjustment costs
99
Hours worked by high-skilled Hours worked by high-skilled persons (share in total hours persons (share in total hours worked)worked)
Source: EUKLEMSEU = EU-15ex (growth accounting) AT, BE, DK, FI, FR, DE, IT, NL, ES, UK
0
5
10
15
20
25
30
35
1990 2000 2004
US EU
1010
OverviewOverview
Why is investment in tertiary Why is investment in tertiary education important?education important?
Do we invest sufficiently in Do we invest sufficiently in tertiary education? tertiary education?
Efficiency and effectiveness Efficiency and effectiveness of public spending in tertiary of public spending in tertiary education education
1111
Investment in Investment in educationeducation
0
0.5
1
1.5
2
2.5
3
3.5
EU25 US Japan
pu
bli
c a
nd
priv
ate
exp
en
dit
ures o
n h
igh
er
ed
ucati
on
(2001)
Public expenditure on higher education as a % of GDP Private expenditure on higher education as a % of GDP
0
1
2
3
4
5
6
7
8
1999 2004 1999 2004 1999 2004
EU27 US Japan
% o
f G
DP
Private expenditure on education
Public expenditure on education
1212
OverviewOverview
Why is investment in Why is investment in tertiary education tertiary education important? important?
Do we invest sufficiently in Do we invest sufficiently in tertiary education?tertiary education?
Efficiency and effectiveness Efficiency and effectiveness of public spending in of public spending in tertiary education tertiary education
1313
Quality of public Quality of public spending spending
Efficiency and effectiveness of public Efficiency and effectiveness of public spending on education: spending on education:
Combine the fiscal discipline Combine the fiscal discipline requested by the SGP with the requested by the SGP with the structural reform agenda of Lisbonstructural reform agenda of Lisbon
Analyses show that efficiency gains Analyses show that efficiency gains are possibleare possible
1414
Spending on primary and Spending on primary and secondary education - secondary education - PISAPISA
Source: OECD
FI
LU
SENL
IE
PL
BE
SKEL ES
PT
HUCZ
DEDK
FR AT
IT
UK
450
460
470
480
490
500
510
520
530
540
550
560
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000
Cumulative expenditures per Pupil over the duration of primary and secondary studies (in $, PPPs)
PIS
A 2
00
6 -
Pu
pil
s p
erf
orm
an
ce
in
th
e
do
ma
in R
ea
din
g (
me
an
sc
ore
)
1515
Joint work byJoint work byEPC WGQPF/COMEPC WGQPF/COM
ObjectiveObjective: : Measurement of efficiencyMeasurement of efficiency Better knowledge on determinants Better knowledge on determinants
of efficiencyof efficiency Policy recommendationsPolicy recommendations
Analysis of spending item by Analysis of spending item by spending item, e.g. R&D, tertiary spending item, e.g. R&D, tertiary education education
Step-by-step approachStep-by-step approach
1616
Stepwise approachStepwise approach
Identifying appropriate Identifying appropriate indicatorsindicators
Calculating efficiency scoresCalculating efficiency scores
Country case studiesCountry case studies
Identifying determinants of Identifying determinants of efficiencyefficiency
1717
ConclusionsConclusions
Tertiary education is key to improve Tertiary education is key to improve productivity and growth and to productivity and growth and to maximise opportunities of globalisationmaximise opportunities of globalisation
It is important to invest sufficient public It is important to invest sufficient public and private spending in tertiary and private spending in tertiary education education
More efficiency and effectiveness of More efficiency and effectiveness of public spending is needed public spending is needed Area for Area for further workfurther work
1818
Thank youThank you