2. EDUCATION IN OECD COUNTRIES

2.1 EDUCATION AND POPULATION

The dimensions of youth in the population determine the potential need for education and training in that country and the bigger the number of youths in the population, the bigger the need for education. This requires these countries to allocate more of their national income to education, in order to provide educational occasions to their children.

2.1.1. The Size of School-Age Population

When size of the school-age population according to student age groups in primary education are considered, those between ages 5-14 comprise 10% of the general population in Italy while this age group comprise 23% of the general population in Mexico and 21% in Turkey.

Graph 32. Percentage of Age Groups 5-14 and 15-19 in the Population (1998)

Note: All of the OECD countries are not evaluated.

Source : OECD, Education at a Glance OECD Indicators (Paris: OECD, 2000)

2.1.2. Education of Adult Population

Education of the general population is important for “human capital”. Appropriately educated population serves as a good source for the development of individuals and country socially and economically. This index actually shows the status of the knowledge and skills the workforce possess.

In 17 of 28 OECD countries, more than 60% of the population aged 25-64 have completed secondary education. In Greece, Italy, Mexico, Spain and Turkey, more than half of the population aged 25-64 has not completed secondary education.

Graph 33. Distribution of the Population Aged 25-64 By Educational Attainment (1998)

(*) 1997.
Source: OECD, Education at a Glance OECD Indicators (Paris: OECD, 2000)

2.2.FINANCIAL SOURCES ALLOCATED TO EDUCATION

Expenses made for education are an investment towards economical progress, increase in production, individual and social development and thus, decreasing social inequality. In 7 of 9 OECD countries, where comparative data exist, state and private expenses for education are considerably increasing and actually, this increase is more than the increase in national wealth. This increase is over 20 % in Australia, Denmark and Spain, and is over 40% in Ireland. On the other hand, a decrease is seen in Finland and Hungary. There is an increase in expenses made for educational institutions and educational grants to students and their families (with the exception of Hungary and Italy).

2.2.1. Educational Expenses By Gross Domestic Product

OECD countries, as a whole, spend approximately 6.1 % of their gross national revenue for education (1997). In most of the OECD countries, a considerable amount of educational expenses are state expenditures. Although the main source of educational expenses is state sources, the contribution of families and private enterprises has started to be another important source.

Graph 34. The Percentage of Expenditure for Educational Institutions in Gross Domestic Product By Fund Sources in Higher Education (1997)

(*) Post secondary-non tertiary education is included.
Source: OECD, Education at a Glance OECD Indicators (Paris: OECD, 2000)

The percentage of state expenditures for college education institutions in gross national revenue is 1 % according to OECD average. Private expenditures as well as state expenditures for college education institutions constitute an important source in the US.

2.2.2. Educational Expenses Per Student

Active schools arise from a combination of properly trained personnel, adequate material and establishments and motivated students. The need for high quality education brings an increase in costs per student, thus requiring a balance in order not to load an excessive weight on the shoulders of taxpayers.

In many countries, cost per student in primary and secondary education has increased even though the total number of students has increased between 1990-1996. On the other hand, in 8 countries out of a total of 14, educational expenditures per student in higher education have decreased because of an increase in the number of students.

There is a proportional relationship between expenditure per student and individual national revenue. Expenditure per student is less in less wealthy countries than the more wealthy ones. On the other hand, a low yearly expenditure may be calculated as higher because of long-term higher education programs.

Table 103. Expenses Per Student in State and Private Educational Institutes By Educational Levels (US $) (1997)

* Public institutions
** Public and private educational institutions partially governed by the state

Expenditure per student is 3851 US dollars at primary education level, 5273 US dollars at secondary education and 8612 US dollars at higher education, according to OECD countries’ average. Comparisons between countries are based on purchasing power parity, not according to market exchange rate. These adjustments do not allow for differences in costs of equivalent educational resources.

2.2.3. Educational Expenses According to Source Categories

It is important how the expenditures are distributed among different functional categories in terms of education quality (teacher salaries, etc), the condition of education buildings (maintenance, mending, etc), changing population distribution and trends in school entrance, in relation to obtaining the adequacy of the education system (construction of new buildings, etc). Decisions on resource allocation in the system affect the nature of education.

Graph 35. Percentage Distribution of Total Expenditures for Primary and Secondary Education (1997)

(1) Public institutions
(2) Public and private educational institutions governed by the state
(3) Post secondary-non tertiary education is not included.
Source: OECD, Education at a Glance OECD Indicators (Paris: OECD, 2000)

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