What happened
Israel spends a higher percentage of its GDP on education compared to the OECD average, at 7.1% versus 5.3%. However, the country's expenditure per student is lower than the OECD average at almost all stages of education.
In early childhood education, Israel spends $7,104 per child, significantly less than the $13,904 spent in developed countries. In higher education, the expenditure per student is about 35% lower in Israel. The share of private funding in higher education is also significantly higher in Israel, at 58.6% of total expenditure, compared to the OECD average of 32.9%.
The primary reason for the gap between high investment in education relative to GDP and low expenditure per student is Israel's demographic structure. Nearly half of the population is under the age of 24, resulting in a larger number of pupils and students, which erodes the budget per student.
In terms of government expenditure per student, Israel spends $10,913, compared to the OECD average of $13,599. The gap is particularly large in higher education, where government expenditure per student in Israel is about 61% lower than the OECD average.
