Tertiary education, as a tool to promote productivity and jobs in Europe Fabienne Ilzkovitz DG ECFIN, European Commission DG ECFIN, European Commission.

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Presentation transcript:

Tertiary education, as a tool to promote productivity and jobs in Europe Fabienne Ilzkovitz DG ECFIN, European Commission DG ECFIN, European Commission Conference on “Quality of tertiary education and the economic policy agenda” April 2 nd 2008

2 Overview Why is investment in tertiary education important? Why is investment in tertiary education important? Do we invest sufficiently in tertiary education? Do we invest sufficiently in tertiary education? Efficiency and effectiveness of public spending in tertiary education Efficiency and effectiveness of public spending in tertiary education

3 Why is investment in tertiary education important? Efficiency and Equity Driver of productivity and growth Driver of productivity and growth Tool to maximise the opportunities of globalisation Tool to maximise the opportunities of globalisation Equip people to minimise adjustment costs Equip people to minimise adjustment costs

4 Why is investment in tertiary education important? Efficiency and Equity Driver of productivity and growth Driver of productivity and growth Tool to maximise the opportunities of globalisation Tool to maximise the opportunities of globalisation Equip people to minimise adjustment costs Equip people to minimise adjustment costs

5 Productivity growth 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%

6 Why is investment in tertiary education important? Efficiency and Equity Driver of productivity and growth Driver of productivity and growth Tool to maximise the opportunities of globalisation Tool to maximise the opportunities of globalisation Equip people to minimise adjustment costs Equip people to minimise adjustment costs

7 Innovation and tertiary education Source: Eurostat / Commission services. EE, LU, RO: no data on expenditure available

8 Why is investment in tertiary education important? Efficiency and Equity Driver of productivity and growth Driver of productivity and growth Tool to maximise the opportunities of globalisation Tool to maximise the opportunities of globalisation Equip people to minimise adjustment costs Equip people to minimise adjustment costs

9 Hours worked by high-skilled persons (share in total hours worked) Source: EUKLEMS EU = EU-15ex (growth accounting) AT, BE, DK, FI, FR, DE, IT, NL, ES, UK

10 Overview Why is investment in tertiary education important? Why is investment in tertiary education important? Do we invest sufficiently in tertiary education? Do we invest sufficiently in tertiary education? Efficiency and effectiveness of public spending in tertiary education Efficiency and effectiveness of public spending in tertiary education

11 Investment in education

12 Overview Why is investment in tertiary education important? Why is investment in tertiary education important? Do we invest sufficiently in tertiary education? Do we invest sufficiently in tertiary education? Efficiency and effectiveness of public spending in tertiary education Efficiency and effectiveness of public spending in tertiary education

13 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

14 Spending on primary and secondary education - PISA Source: OECD

15 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

16 Stepwise approach Identifying appropriate indicators Identifying appropriate indicators Calculating efficiency scores Calculating efficiency scores Country case studies Country case studies Identifying determinants of efficiency Identifying determinants of efficiency

17 Conclusions Tertiary education is key to improve productivity and growth and to maximise opportunities of globalisation 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 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 More efficiency and effectiveness of public spending is needed  Area for further work

18 Thank you