The OECD (Organisation for Economic Co-operation and Development) has published "Education at a Glance 2008, OECD Indicators". The publication includes information on education in the 30 member countries. Additional information can be found for Brazil, Chile, Estonia, Israel, the Russian Federation and Slovenia. The data are mainly from the school year 2005-2006. The majority of data on Iceland are based on information from Statistics Iceland.
The publication comprises four chapters that discuss: The output of educational institutions and the impact of learning; financial and human resources invested in education; access to education, participation and progression, and the learning environment and the organisation of schools. The publication includes numerous tables and charts. Additional material can be found on the OECD website (http://www.oecd.org).
Increasing number of students and financing of education at the tertiary level
In the publication the OECD discusses the decisions that governments face due to the increasing number of students at the tertiary level. It has been difficult for governments to increase expenditure on tertiary education in line with the increasing number of students. As a result, expenditure per student has decreased in many member countries. In 1995, 37% of a cohort attended university whereas now the average across the OECD countries is 57%. According to the OECD, more people believe that the cost of providing education should be shared between the public and private sector, at least at the tertiary level, given the shared public and private returns that education brings. Furthermore, according to the OECD many European countries have not increased public investments in their universities in line with the increase in student numbers, with the result that average spending per tertiary level student is more than twice as high in the United States as in Europe. Some countries do not allow universities to charge tuition fees, resulting in increasing budgetary difficulties. A possible result is that the quality of the programmes may be compromised if student numbers continue to increase. The governments of the OECD countries therefore face difficult decisions on the issue of financing of tertiary education.
Expenditure on education increased faster than the increase in student enrolments at the primary and secondary levels from 1995 to 2005 in all member countries, and faster than the increase in GDP in two-thirds of the countries. As a result, expenditure per student has increased at these school levels. At the same time student numbers are falling in some of the countries, since the cohorts are smaller than in the past. If the expenditure for these levels remains constant there will be room to improve the quality of education provided.
The relationship between class size, the hours students spend in the classroom, the hours teachers teach, and teacher salaries at the upper secondary level is analyzed in the publication. The results indicate that governments have different priorities in their education policies. The analysis depicts that, for example in countries where the salary cost per student at the upper secondary level as a percentage of GDP per capita is low teachers’ salaries as a percentage of GDP per capita are low, while class size, instruction time and teaching time are less important. Among these countries are Iceland, Ireland, Norway, Poland, Slovakia and Sweden. The exception is Mexico, where teacher salaries are high but are compensated by large class sizes.
Iceland spends more on education than any other OECD country
Expenditure on educational institutions increased in all OECD countries from 1995 to 2005 and on average by 19% from 2000 to 2005. On average, the OECD countries spent 6.1% of GDP on educational institutions in 2005. The OECD countries used a greater share of public expenditure for education in 2005 than in 1995, from 11.9% in 1995 to 13.2% in 2005 among the OECD countries as a whole.
Iceland's expenditure on educational institutions amounted to 8.0% of GDP in 2005 which puts Iceland in first place among the OECD countries. Expenditure on educational institutions as a percentage of GDP has increased in Iceland from 2000 to 2005. During that time expenditure for all school levels has increased by 61% using constant prices, which is the largest increase experienced within the OECD during this period. Expenditure for primary and secondary level education has increased by 40% and by 77% for the tertiary level. At the same time GDP has increased by 23%.
In general it can be stated that a country's age distribution and participation in education has considerable influence when comparing expenditure on education. Expenditure is usually higher in countries with a young population and where students are a large proportion of the population. In Iceland more than 30% of the population are students, which is the second highest percentage within the OECD. Only in Mexico are students a larger share of the population.
When considering expenditure per student from primary to tertiary education Iceland is in 7th place among the OECD countries. Iceland spent 8,931 USD on average per student in 2005. The average for the OECD countries was USD 7,527. Iceland is in 2nd place when comparing spending at the pre-primary level, 2nd place at the primary level and 6th place at the lower secondary level. On the other hand, Iceland spends below the OECD average per student at the upper secondary level (12th place) and at the tertiary level (18th place).
A debate has been going on in Iceland on the financing of education, as in many other OECD countries. In nearly three out of every four OECD countries private expenditure on education has increased more than public expenditure on education from 1995 to 2005, even though almost 86% of educational expenditure comes from public sources. Private expenditure on educational institutions in Iceland increased slightly between 2000 and 2005, or from 8.9% to 9.1% of all expenditure on educational institutions (see figure 1). The average for the OECD countries is 14.5%, indicating that private expenditure on education in Iceland is considerably lower than the average in the OECD countries.
An increasing number of Icelandic students
The number of students in Iceland has increased year by year. During the school year 2005-2006 84.6% of 15-19 year olds were enrolled in education, while the average for the OECD countries was 81.5% (see figure 2). In the age group 20-29 years old, 37.2% of Icelanders were enrolled in education. Only in Finland and Denmark is a larger share of the population enrolled in education. In addition, 12.5% of people in the thirties and 3.4% of those who are 40 years old and older are enrolled in education. Iceland has the second highest net entry rate into tertiary-type A education of all OECD countries after Australia, at 78%, while the OECD average is 56%. Net entry rates are computed by dividing the number of new entrants in each age group by the population of that age group, then adding up the rates for the total. The high entry rate in Iceland is partly explained by the large number of older students at the tertiary level as 20% of new entrants in Iceland are 40 years and older. The high entry rate will probably not continue since the number of older people in Iceland who have never attended tertiary-type A education is limited.
In Iceland women comprise 60% of new entrants at the tertiary level, while the average for OECD countries is 54%. A large percentage of new entrants at the tertiary level in Iceland study social sciences, business, law and services (40% of new entrants) and humanities, art and education (31% of new entrants). Women are a large majority of new entrants in these fields, as in the fields of health and welfare. A total of 9% of new entrants study engineering and construction but women comprise 33% of new entrants in these fields. Only in Denmark is the share of women in these fields higher, at 35%. New entrants in the fields of sciences and agriculture comprise 6% of all new entrants. In these fields women comprise 59% of new entrants, which is the second highest rate within the OECD. In Portugal women comprise 60% of new entrants in these fields.
The net graduation rate at the tertiary level of education is the highest in Iceland of all OECD countries. The net rate for first-time graduation for tertiary-type A programmes is 62.8% in Iceland while the average for OECD countries is 37.3%. The graduation rate in Iceland is 86.5% for females and 40.2% for males. Nowhere in the OECD countries is the difference between the sexes greater than in Iceland. In addition, the net graduation rate for tertiary-type B education is 4.1% in Iceland and 9.1% on average for the OECD countries. The net graduation rate is computed by adding up age-specific graduation rates.
The graduation rate among those who graduate for the first time at the upper secondary level in Iceland is 90%, 100% among females and 81% among males. The graduation rate is computed by counting all first-time graduates at the upper secondary level, irrespective of their age, and dividing by the number of 20 year olds in Iceland. The graduation rate for the OECD countries is 83%.
Decision making in the school system has become more decentralised
Decision making in the school system has become more decentralised in more than one-half of the OECD countries from 2003 to 2007. In Iceland and Australia the changes have been greatest during this period, since at least 15% more decisions are taken at a more decentralised level. In 2007 40% of decisions at the lower secondary level in Iceland were taken at the school level, while in 2003 the rate was 25%.
OECD’s press release on Education at a Glance and a summary of the publication in Icelandic can be found on the OECD website http://www.oecd.org.