A short time ago the OECD published a comparative report describing education in OECD countries in 2021. Looking at the various countries’ government per capita investments in education reveals that at all educational levels, Israel invests less than the average among OECD countries. The largest gaps are to be found in early education (ages 0-3) and non-academic post-secondary education.
An OECD publication reveals that per capita public expenditure on education in Israel is low at all educational levels. [Education at a Glance 2024].
The figures show that government investment in early education in Israel is 54% lower than the average in OECD countries: while Israel spends on average $5,864 for every child, the OECD average spending per child is actually more than double: $12,750.
Graph: Per Pupil Expenditure by Level in 2021, Israel and OECD Average, in PPP dollars
Source: Adva Center analysis of OECD. Education at a Glance 2024.
The situation of early education in the public sector is of special concern. Only about a fourth of children aged 0-3 are to be found in subsidized educational frameworks, like family and institutional day care systems. There is a shortage of day care due to the low rate of construction of new institutions and also a shortage of care workers, due to heavy workloads and low remuneration. In addition, staff members are responsible for more children than recommended by professionals, making it more difficult to provide high-quality care and education.
The construction of day care centers has been progressing at a painfully slow pace, mainly due to problems like the lack of public spaces designated for building. Thus, the usage of budgets allocated for the construction of day care centers remains low at all types of local authority. The problem is especially serious in Arab localities, where between 2014 and 2020, these local authorities utilized only 50% of the budgets allocated for day care centers. This contrasts with the situation in non-Haredi Jewish localities, where 61% of such budgets were utilized, and Haredi localities, where 79% of designated budgets were utilized.
As mentioned above, the problem is not only construction but also personnel, from the standpoint of both quality and quantity.
At the level of early education, the figures reveal that Israel’s investment in this level of education in 2021 was significantly lower than the OECD average: Israel invested some $6,800 per child, a sum that was 42% lower than the OECD average, which stood at $11,735 per child.
When it comes to higher levels, Israel invests comparatively more in elementary than in secondary education. At the elementary level, Israel’s outlays per student are only 5% lower than the OECD average. However, in secondary education, which includes both middle and high school, the gap is larger: 21%.
In 2023, the average annual expenditure per student from elementary through high school was higher in state religious education than in state secular education: NIS 25,634, compared with NIS 22,153.
Graph: Percentage Disparity in Per Pupil Expenditure between Israel and the OECD Average, 2021
Source: Adva Center analysis of OECD. Education at a Glance 2024.
As indicated in the above figure, Israel’s investment in post-secondary education is especially low – 52% less than the average in OECD countries; Israel also spends much less on occupational training and non-academic degree programs. Thus, in 2021, the public expenditure on direct training for the job market amounted to 0.13% of GDP, compared to the average of 0.63% of GDP in OECD countries. When it comes to active labor policies, Israel ranks second from the bottom, with only the United States spending relatively less.
Despite the fact that in Israel higher education is subsidized, its investment per student is 33% lower than the average in OECD countries. This means fewer supplementary services like libraries and laboratories, lower investment in research and development and a higher student/instructor ratio.
