Adapting the Icelandic Education System to a Changing Environment

This paper reviews Iceland’s performance in skills accumulation against the backdrop of a rapidly changing economic environment and discusses directions for further improvements. Since the late 1990s, the government has considerably raised expenditure on education, which is now among the highest in the OECD relative to GDP. Nonetheless, Iceland continues to have one of the largest shares of those in the working age population who have not attained upper secondary or higher qualifications, and educational achievements of 15- year olds are not outstanding relative to the country’s advanced state of economic development. This is all the more unsatisfactory because spending per student in the compulsory education sector exceeds the OECD mean considerably, even after controlling for differences in per capita GDP. Measures to improve outcomes include curriculum adjustments and an enhancement of teaching evaluation and quality. While ensuring that students acquire a satisfactory basic set of competencies, there is room for reducing the average duration of primary and secondary education, which is quite long by international comparison. In contrast to upper secondary attainment, that for the tertiary sector is above the OECD average, and higher education has to cope with an enormous rise in participation. With a view to maintaining quality in the face of these developments, the government has introduced legislation that is welcome. However, it does not address the issue of tuition fees, which are authorised in the private but not in the public sector. This Working Paper relates to the 2006 OECD Economic Survey of Iceland (www.oecd.org/eco/surveys/iceland). Ce travail passe en revue les résultats des efforts déployés par l’Islande pour développer les compétences de sa population dans un contexte économique en mutation rapide, et examine la voie à suivre pour progresser encore dans ce domaine. Depuis la fin des années 90, les pouvoirs publics ont sensiblement augmenté les dépenses d’éducation, qui figurent aujourd’hui parmi les plus élevées des pays de l’OCDE par rapport au PIB. Toutefois, l’Islande enregistre toujours l’une des plus fortes proportions de personnes d’âge actif qui n’ont pas achevé le deuxième cycle de l’enseignement secondaire, et les acquis scolaires des jeunes de 15 ans ne sont pas exceptionnels compte tenu du stade avancé de développement économique du pays. Cette situation est d’autant moins satisfaisante que les dépenses par élève dans le secte