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E-book Financing Quality Education for All : The Funding Methods of Compulsory and Special Needs Education
Countries around the world attempt to increase the human capital of their citizens. Currently, education constitutes a large share of the economy in developed countries. The average expenditure on primary and secondary education institutions is about 3.5% of GDP in OECD countries (OECD, 2016). Moreover, investment in education has large implications for economic development, democratic institutions as well as overall wellbeing. This makes the choice of a funding system very important for any country. Nevertheless, the academic literature does not (yet) provide a clear consensus and guid-ance on which system leads to the best educational outcomes. Even in cases where the literature provides a clearer picture, it shows that different funding systems lead to optimal outcomes under very different circumstances. For instance, school autonomy is positively associated with educational outcomes in developed countries; however, the relationship is negative in developing countries (Hanushek et al. 2013). Another example can be class size – the size seems to be a relevant variable only in countries with poorer teacher quality (Hanushek and Woessmann, 2017). Furthermore, it is obvious that different countries face different challenges in terms of current educational levels, teachers’ training and abilities, language and geographical challenges and the like. Various educational systems also pursue different goals. Thus, it is not surprising that funding systems differ tremendously across countries and also across the best performing countries.
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