On average across OECD countries, USD 11 900 is spent per primary school student per year. For higher levels of education, spending increases: USD 13 300 is spent per secondary school student, while USD 20 500 is spent per tertiary student. This reflects that fact that higher levels of education often require teachers to have more advanced qualifications and specialised knowledge, which are usually accompanied by higher salaries.
Education financing
Every year, governments, companies, students and their families make decisions about investing in education. Educational expenditure indicators help to show what, how and where financial resources are directed to education.
Key messages
Countries invest in education to help foster economic growth, enhance productivity, contribute to personal and social development and reduce social inequality, among other reasons. In 2021, OECD countries spent an average of 4.9% of their gross domestic product (GDP) on education (from primary schools to universities). Public investment into education has kept up with overall economic growth: across OECD countries, average government expenditure on education has grown at about the same rate as GDP between 2015 and 2021.
Public spending allows governments to meet various needs, such as education, health care and public safety. Budget decisions reflect national priorities and the potential for private service provision. In 2021, spending on education (from primary to tertiary levels) accounted for 10% of total government expenditure on all services (including for example health, social protection etc.) across OECD countries. Nearly three-quarters of this was dedicated to primary and secondary education, which reflects the fact that these levels are (mostly) part of compulsory education and are largely government-funded.
Context
Total expenditure per full-time equivalent student by level of education
Spending per full-time equivalent student is the highest for tertiary levels in OECD countries, with the exceptions of Korea and Portugal. However, this relationship is not linear: countries spending relatively more for tertiary levels do not necessarily also spend more for primary or secondary education.
Total expenditure on educational institutions as a share of GDP
Spending on education institutions as a share of GDP ranges from three to more than eight percent. Many factors influence the relative position of countries on this measure, including the relative number of students enrolled, the duration of studies, the effective allocation of funds, and the country’s GDP magnitude driven by factors external to education.
