Transcript Ms. Fabienne Ilzkovitz

Tertiary education, as a tool
to promote productivity and
jobs in Europe
Conference on
“Quality of tertiary education and the economic
policy agenda”
April 2nd 2008
Fabienne Ilzkovitz
DG ECFIN, European Commission
Overview
 Why
is investment in tertiary
education important?
 Do
we invest sufficiently in
tertiary education?
 Efficiency
and effectiveness of
public spending in tertiary
education
2
Why is investment in tertiary
education important?
Efficiency and Equity
 Driver
of
productivity
and
growth
 Tool
to
maximise
the
opportunities of globalisation
 Equip
people to minimise
adjustment costs
3
Why is investment in tertiary
education important?
Efficiency and Equity
 Driver
of
productivity
and
growth
 Tool
to
maximise
the
opportunities of globalisation
 Equip
people to minimise
adjustment costs
4
Productivity growth
4.5
US
4.0
EU-15
3.5
3.0
2.5
2.0
1.5
1.0
0.5
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975
1973
1971
1969
1967
1965
0.0
A 1 year increase in average educational attainment of the workforce tends
to increase productivity by app. 7-10%
5
10 years sliding average annual growth rate
Why is investment in tertiary
education important?
Efficiency and Equity
 Driver
of
productivity
and
growth
 Tool
to
maximise
the
opportunities of globalisation
 Equip
people to minimise
adjustment costs
6
Innovation and tertiary
education
0.8
SE
0.7
FI
DK
JP
DE
0.6
Summary Innovation Index
2007
US
0.5
IE
FR
EU
BE
NL
AT
0.4
CZ
SI
CY
IT
ES
0.3
LT
MT
EL
PL
BG PT
0.2
HU
SK
LV
0.1
0.0
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
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
Source: Eurostat / Commission services.
EE, LU, RO: no data on expenditure available
20 000
7
Why is investment in tertiary
education important?
Efficiency and Equity
 Driver
of
productivity
and
growth
 Tool
to
maximise
the
opportunities of globalisation
 Equip
people to minimise
adjustment costs
8
Hours worked by high-skilled
persons (share in total hours
worked)
35
30
25
20
15
10
5
0
1990
2000
US
2004
EU
Source: EUKLEMS
EU = EU-15ex (growth accounting) AT, BE, DK, FI, FR, DE, IT, NL, ES, UK
9
Overview
 Why
is investment in tertiary
education important?
 Do
we invest sufficiently in
tertiary education?
 Efficiency
and effectiveness of
public spending in tertiary
education
10
Investment in education
8
P rivat e expendit ure on educat ion
P ublic expendit ure on educat ion
7
6
% of GDP
5
4
3
2
1
0
1999
2004
1999
EU27
2004
US
1999
2004
Jap an
public and private expenditures on higher
education (2001)
3.5
3
2.5
2
1.5
1
0.5
0
EU25
Public expenditure on higher education as a % of GDP
US
Japan
11
Private expenditure on higher education as a % of GDP
Overview
 Why
is investment in tertiary
education important?
 Do
we invest sufficiently in
tertiary education?
 Efficiency
and effectiveness of
public spending in tertiary
education
12
Quality of public
spending
Efficiency and effectiveness of public
spending on education:


Combine the fiscal discipline requested by
the SGP with the structural reform agenda
of Lisbon
Analyses show that efficiency gains are
possible
13
Spending on primary and
secondary education - PISA
PISA 2006 - Pupils performance in the
domain Reading (mean score)
560
550
FI
540
530
520
IE
510
PL
SE
NL
BE
500
490
UK DE
FR
CZ
HU
480
SK
460
AT
LU
PT
470
DK
EL
IT
ES
450
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)
Source: OECD
14
Joint work by
EPC WGQPF/COM
Objective:



Measurement of efficiency
Better knowledge on determinants of
efficiency
Policy recommendations
Analysis of spending item by spending
item, e.g. R&D, tertiary education
Step-by-step approach
15
Stepwise approach

Identifying appropriate indicators

Calculating efficiency scores

Country case studies

Identifying determinants of
efficiency
16
Conclusions



Tertiary education is key to improve
productivity and growth and to maximise
opportunities of globalisation
It is important to invest sufficient public
and private spending in tertiary education
More efficiency and effectiveness of
public spending is needed  Area for
further work
17
Thank you
18