Germany invests too little in education and has too many young adults without vocational qualifications, a new OECD report shows. Yet every euro of school support pays off, as calculations by the German Economic Institute (IW) show.
Germany is neglecting its schools, according to an OECD report published today: In 2021, 4.6 percent of gross domestic product flowed into educational institutions from primary schools to universities. The OECD average was 4.9 percent. Germany also spends less per student in primary and secondary schools than comparable neighboring countries such as Denmark and Austria.
Foreign students need more support
A bad report, because financial needs have recently increased. Billions are missing, especially when it comes to supporting children with a migrant background. The proportion of children with a migrant background aged 15 has increased by 13 percentage points in the last ten years and was almost 39 percent in 2022. Their parents often have a lower level of education, many of them do not speak German at home – and they have attended kindergarten less often. This makes it more difficult to acquire language and reading skills – skills that are crucial for educational success, as the new education monitor shows.
The situation is particularly critical in schools where the majority of students have a migrant background. IW evaluations of PISA data show that in 2022, more than one in three 15-year-olds with a migrant background went to a school where more than 75 percent of their classmates have a migrant background. It is particularly difficult for these schools to provide the necessary support. The result: children with a migrant background are left behind and often do not reach the level of maturity for training.
Investments are worthwhile
That is why targeted support is the key to combating unequal educational opportunities. The Ministry of Education’s Start Opportunities program is a good approach: over ten years, two billion euros will be invested annually in around ten percent of schools with the greatest social challenges. IW calculations show that these 20 billion euros will bring 56.3 billion euros into the state coffers in the long term – for example through additional tax revenues and lower transfer payments. The net effect for the state in the long term is therefore 36.3 billion euros. And even more would be possible: if the program were expanded to 40 percent of schools with 80 billion euros, more than two thirds of all disadvantaged students could benefit from it – possible net effect for state finances: more than 100 billion euros.
“Politicians must focus more on children’s education. More investment pays off in the long term – socially and economically,” says IW education expert Axel Plünnecke. “Ultimately, it is the children who will drive the economy in the future, shape society and secure our prosperity.”
