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International Trends in Higher Education Funding
- 1. The Guardian The F t Th Future of Hi h Ed f Higher Education ti London 11 March 2010 International Perspectives on o sp so Funding Structures Donald E. Heller
- 2. International trends in higher education Massification Shift from public to private sources of funding Focus on quality assurance and the role of higher education in serving society and the economy © 2010, Donald E. Heller 2
- 3. Tertiary attainment rates Population that has attained at least tertiary education (2007) Percentage, by age group % 70 55‐64 year‐old 25‐34 year‐old 60 50 40 30 20 10 0 Israel Netherlands Korea Japan Denmark New Zealand Turkey Brazil France Belgium Spain Germany Switzerland Hungary Australia Greece Austria Mexico Italy Chile2 Slovak Republic Czech Republic an Federation1 Sweden Norway United States Luxembourg Iceland Portugal Estonia OECD average Poland Canada Ireland Finland Slovenia United Kingdom Russia S U 1. Year of reference 2002 2. Year of reference 2004 Countries are ranked in descending order of the percentage of 25-34 year-olds who have attained at least tertiary education. Source: OECD. Table A1.3a. See Annex 3 for notes (www.oecd.org/edu/eag2009). © 2010, Donald E. Heller 3
- 4. 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Australia © 2010, Donald E. Heller Austria Belgium Canada Czech Republic h Denmark Finland OECD Average Hungary Iceland Ireland Japan Ne etherlands New Zealand w International students Norway Slovak Republic k Spain Sweden Proportion of international students in tertiary education, 2007 Sw witzerland United Kingdom Source: OECD Table C2.1 ted Unit States 4
- 5. 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% © 2010, Donald E. Heller Australia Austria Belgium Canada Czech Republic h Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Mexico Ne etherlands New Zealand w Norway 1995 Poland Portugal Slovak Republic k 2000 Spain Tertiary education spending as % of GDP Sweden Sw witzerland Source: OECD Table B2.1 2006 Turkey United Kingdom ted Unit States O OECD ave. 5
- 6. 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% © 2010, Donald E. Heller A Australia Austria Belgium Canada Czech Republic R D Denmark Finland France G Germany H Hungary Iceland Ireland Italy Japan Korea Mexico Neth herlands New Zealand Poland Portugal Private Slovak Republic R Spain Public Sweden Public and private investment in tertiary education United Kingdom K Public and private expenditures on tertiary education as % of GDP, 2006 Source: OECD Table B2.4 United States d OE ECD ave. 6
- 7. Spending on tertiary education Tertiary education spending per student, 2006 ($US PPP) $30,000 $25,000 $20,000 OECD Average $15,000 $10,000 $5,000 $0 Korea Mexico therlands Denmark Finland Germany Czech Republic Ireland Sweden France Iceland Norway Slovak Republic Australia Austria Canada* Japan Hungary Italy Spain Belgium Poland Portugal United Kingdom witzerland Unite States New Zealand ed G D Net w Sw © 2010, Donald E. Heller *Author’s estimate from StatCan, OECD Source: OECD Table B1.1a 7
- 8. Relationship between spending and attainment 60 Canada Japan p % with tertiary credential, 200 (age 25-34) 50 Ireland Norway 07 France Australia 40 0 Sweden Denmark United States Spain Finland United Kingdom Netherlands Switzerland 30 Poland 3 y OECD ave. attainment Germany Hungary Portugal 20 r = .73 Italy Mexico Austria Slovak Republic Czech Republic Turkey OECD ave. spending 10 0.5 1.0 1.5 2.0 2.5 Tertiary spending as % of GDP, 1995 © 2010, Donald E. Heller Source: OECD Tables B2.1 & A1.3a 8
- 9. Tuition charges Average university tuition fee charges, 2006 ($US PPP) $25,000 $25 000 Public Private $20,517 $20,000 $15,000 $10,000 $ , $8,519 $7,902 $7 902 $6,695 $5,666 $4,279$4,717 $4,694 $5,000 $4,035 $3,705 $3,866 $2,765 $1,707 $825 $1,123 $1,180 $844 $0 $0 $0 $0 $0 $0 $0 $0 Korea Canada Iceland Australia Austria Denmark Finland Japan Netherlands United Kingdom Unite States Czech Republic Italy New Zealand Spain Ireland Portugal Sweden ed A K D © 2010, Donald E. Heller Source: OECD Table B5.1a 9
- 10. Public funding for higher education in three countries U.S. England Canada Public/private funding mix 34%/66% 65%/35% (UK) 53%/47% (2006) Sources of public funding 51 1 11 Fee-setting authority F tti th it Mixed Mi d Public P bli Public P bli Loan providers Multiple 1 1+ Loan type Mortgage ICR Mortgage Federal/state/ Federal/ Federal/ Grants institutional institutional Provincial institutional The challenges of affecting access and attainment through public policy levers are quite different in the three countries © 2010, Donald E. Heller 10
- 11. Challenges Continuing demands for public support of higher education Expansion – access and completion Maintaining (or increasing) quality The role of private funding Increasing tuition fees Private, philanthropic support Business support Ensuring equity Financial, academic and cultural barriers Financial academic, Managing the migration of students Spaces Revenue implications Quality © 2010, Donald E. Heller 11