1. Item 3.2 – Improvement of expenditure data on education
Arnaud Desurmont
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

2. Improvement of expenditure data on education
Context
Objective, on-going tasks and timeline
Main outcomes of the assessment of the UOE finance data
UOE finance data pilot data collection: results
Quantification and reconciliation exercise
Conclusions and further steps
Topics for discussion
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

3. Context
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

4. In reply to the 2012 Communication of the Commission on "Rethinking Education: investing in skills for better socio-economic outcomes"; ↓
Indicator Expert Group about "indicators for monitoring education investment (2014);
Eurostat new project (2015): "Improvement of expenditure data on education" (incl. contract running from 01/2016 to 03/2018);
In the meantime:
The Council (ECOFIN) "recognises the importance of timelier, better and integrated data (…) on major components of social expenditure" (education, health and social protection) in 2016.
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

5. Objective, on-going tasks and timeline
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

6. General objectives of the project
To make available more timely expenditure data on education
To improve the quality of the UOE finance data though methodological improvements and through a better understanding of the conceptual differences between the UOE methodology and the National Accounts methodology
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

7. On-going tasks
Task 1 – Assessing the quality of the existing 'UOE' expenditure data (in progress);
Task 2 – Organising a pilot data collection in view of producing fresher/more up to date and timely core indicators (completed);
Task 3 – Inventory and documentation of the main methodological differences between the 'UOE' expenditure data and other finance data on education (in progress);
Task 4 – Quantifying the main methodological differences between the 'UOE' expenditure data and other finance data on education (in progress);
Task 5 – Comprehensive assessment of expenditure data on education (incl. recommendations to improve or adapt the UOE
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

8. Assessment of the UOE finance data
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

9. Statistical processing
Sources of data:
Use of multiple sources;
Use of different types of sources (admin data and surveys);
Surveys are mostly used to report data on R&D, on households expenditure and on private institutions.
Estimation:
Estimations are used to breakdown expenditure by ISCED level and/or for a very large spectrum of variables e.g. components of households expenditure, transfers to households and students, personnel expenditure, private institutions
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

10. Availability of data FIN1-Source:
Lower availability for private expenditure than for government expenditure and especially:
Households payment outside educational institutions;
Households direct payment to private educational institutions;
Expenditure of other private entities to independent private institutions;
Government expenditure: lowest availability rate for "public grants attributable for tuitions fees to educational institutions (G10a)"
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

11. Availability of data FIN2-Nature: lowest availability: ISCED levels:
Expenditure in private institutions;
Current expenditure – non teaching staff;
Other non-salary compensation.
ISCED levels:
Breakdown between ISCED 3.4 and 3.5; between ISCED 4.4 and 4.5;
"Not classified by level": central gvt direct expenditure in public institutions (C1), designated for capital (C5a), local gvt direct expenditure in public institutions (L1), staff compensation (X6), salaries (X7) and retirement in public institutions (X8).
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

12. Comparability
Childcare component and evening child care: no exclusion of the child care component in 8 MS;
Cost of a dual-system programme to the employer: not or partially covered in 6 MS;
Households' payment for private tutoring: not covered or not separated in 6 MS;
Student living costs: Not covered in 6 MS and covered with deviations in 2 MS;
Ancillary services coverage: types of ancillary services covered vary (most common are meals, transportation and dormitories)
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

13. UOE finance data pilot data collection: results
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

14. Key characteristics/milestones of the UOE finance pilot data collection exercise:
Voluntary basis;
Reference year 2015;
Selection of data for a core set of indicators;
From 11 July 2016 to 31 January 2017.
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

15. Participation and reasons for not participating
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

16. Results of the UOE finance pilot data collection exercise
France, the Netherlands and Sweden and to a lesser extent Poland: as much data for the pilot exercise as for the regular UOE-2016 data collection;
Belgium - Flemish Community and Hungary: availability of data in the pilot is far lower than the one in the regular UOE data collection;
Two candidate countries (the Former Yugoslav Republic of Macedonia and Serbia) present a low availability rate for both FIN1-Source and FIN2-Nature.
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

17. Conclusions
Given the existing statistical infrastructure/processes at national level, it is not possible for nearly all members of the ESS to collect fresher UOE finance data (i.e. one year earlier than the Commission Regulation 912/2013 deadline).
Benefit to learn from the experience of the few ESS members that are able to provide data earlier: what is the statistical infrastructure they put in place? How long did it take to build such capacity? What was the impetus for such development?
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

18. Quantification and reconciliation exercise
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

19. Objective of the reconciliation exercise:
Ongoing inventory of the main conceptual differences between the UOE and the NA frameworks;
Objective of the reconciliation exercise:
To quantify the methodological differences between "UOE" expenditure data and National Accounts data on education ("step by step walk");
To summarise them in a reconciliation table;
To foster the transparency between the UOE and NA.
Method: populating the reconciliation table(s) in 6 volunteer countries (one day country visit)
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

20. Country visits Volunteer countries (6 volunteers needed);
Between July 2017 and October 2017;
Two visiting experts (1 UOE expert and 1 National Account expert) commissioned by Eurostat;
1-day on site visit but preparatory phase and follow-up phase.
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

21. Country visit
All countries are welcomed but the exercise would especially benefit from the participation of:
Countries having already completed such a reconciliation exercise;
Countries that are currently implementing such reconciliation process or any project aiming at better understanding the links between the UOE and the NA methodologies.
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

22. Topics to be covered
Characteristics and timeline of the various data sources used by UOE and NA;
Scope of education: formal/non formal education, ISCED classification, Ancillary/subsidiary services to education, scope of R&D, etc.
Definition of institutional sectors/units;
Reconciliation of transactions/type of expenditure: data processing/data treatment
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

23. Conclusions and further steps
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

24. Further activities in 3 keys areas:
Improving the comparability of data and the UOE methodology on education expenditure:
Improve availability and comparability of the UOE data;
Improve the structure of the quality reports;
Improve the UOE methodology (incl. clarify the UOE manual, focus and develop guidelines on specific concepts).
Developing the consistency between the UOE methodology and the national accounts methodology:
Cross analysis of concepts (UOE vs. NA) may lead to improvement of the UOE manual.
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

25. Further activities in 3 keys areas:
Defining a strategy to improve the timeliness of UOE finance data:
Short term: how to better meet current EU regulation deadlines?
Medium and long term: alternative strategies (early estimates procedures for "genuine core" indicators?)
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

26. Operational conclusions
Eurostat will disseminate the report about the conceptual differences between the UOE and the NA for written comments (Autumn 2017)
Eurostat suggests to organise a workshop in February 2018 in order to:
Present the results of the contract;
Discuss further steps of the project toward the improvement of expenditure data on education(in the 3 key areas):
To clarify the objectives;
To prioritise the objectives;
To set up the time frame for dedicated actions;
To provide recommendations to set up a dedicated Task Force;
To take into consideration the various existing initiatives (e.g. from UIS, OECD)
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

27. Discussion
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

28. The ETS Working Group is invited to take note of:
The main preliminary outcomes of the assessment of the UOE finance data;
The results of the UOE finance pilot data collection;
The written consultation about the report detailing the conceptual differences between the UOE and the NA that will take place during Autumn 2017.
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017

29. Members of the ETS Working Group are invited to express their views on:
The approach of the reconciliation exercise and their willingness to participate to this exercise by hosting a visit;
The Eurostat proposal for further activities (in the medium and long term) to improve expenditure data on education in three key areas
The Eurostat proposal to organise a workshop on the February 2018 to organise in-depth technical discussions
Eurostat Education and Training Statistics Working Group - Luxembourg, 1-2 June 2017