Modern Australian
The Times

Estonia didn't deliver its PISA results on the cheap, and neither will Australia

  • Written by Peter Goss, School Education Program Director, Grattan Institute

Education news in Australia last week was dominated by Australia’s worst ever showing in the OECD’s PISA (Programme for International Student Assessment) tests. The mathematical literacy of our students has fallen to the OECD average. It’s not good enough for a rich country like Australia.

Improving outcomes will need good policy, steady support for schools, and consistent hard work.

Economically illiterate arguments from our leaders don’t help. When the PISA results came out, federal education minister Dan Tehan said:

Our government is providing record funding of $310.3 billion to schools. Money is not the issue because Estonia was the top-performing country in reading and science and they spend half as much money per student as Australia.

In fact, Estonia spends virtually the same per student as Australia, once wage differences are taken into account.

It’s not ‘half as much money per student’

Estonia’s performance in PISA 2018 was impressive. Although they weren’t “the top performing country”, they were one of them and did significantly better than Australia. But what about their funding?

According to the OECD’s Education at a Glance 2019 report, Estonia spends the equivalent of US$6,900 per student per year for both primary and secondary students, while Australia spends US$10,000 per primary student and US$11,650 per secondary student.

Estonia didn't deliver its PISA results on the cheap, and neither will Australia Estonia’s spend per student is around 60 to 70% that of Australia’s.

Leaving aside the fact 60-70% is quite a long way from half, the real problem with Tehan’s claim is that wages are very different in the two countries.

The starting wage for a secondary school teacher in Estonia, for instance, is US$22,200. In Australia, it’s exactly double that. Here’s why that matters.

Wages are higher in richer countries

Generally speaking, high wages reflect high labour productivity. But workers in rich countries still tend to be paid more even if they are no more productive than those in poorer countries.

Cost comparisons must adjust for differences in wages. And teacher wages are much higher in Australia than Estonia, because all wages are higher.

Estonia didn't deliver its PISA results on the cheap, and neither will Australia As average wages in a country rise, so do teachers’ wages.

Like other service professions, labour productivity in teaching probably doesn’t rise much over time. The number of students a teacher can teach in an hour, with a given quality of instruction, is pretty stable.

Yet as wages in other sectors rise, reflecting productivity growth, teacher wages must also rise to stop teachers from chasing bigger bucks elsewhere.

Put bluntly, teachers get paid more in Australia than Estonia because Australian teachers have better-paid alternatives.

And it’s not just teachers who get paid much less in Estonia. Converted into US dollars (and adjusted for costs), their prime minister gets paid around one-third what our prime minister does.

Estonia didn't deliver its PISA results on the cheap, and neither will Australia Australia’s wages are higher than those in Estonia.

Estonia spends the same as Australia on schools

Australia spends 3.9% of its GDP on school education, compared to Estonia’s 2.9%. But this statistic only tells part of the story, because one in six Australians are school-aged but only one in seven Estonians are.

The OECD does publish one metric that effectively takes account of both wages and demographics: the spend per student as a percentage of GDP per capita.

On this basis, Estonia spends the same on school education as Australia – 22% of GDP per capita for each student. Looking just at public spending, Australian governments spend 15% less than the Estonian government, and about 16% less than the average of other comparable OECD country governments.

Estonia didn't deliver its PISA results on the cheap, and neither will Australia Australian governments spend less than the Estonian government on schools.

Private funding of school education is higher in Australia than Estonia, but much of this goes to sports ovals and arts centres, not teaching.

But didn’t Australia massively increase school funding?

No. The nominal dollars spent each year on schools went up by A$21 billion in the decade to 2017, but mainly because wages and student numbers grew.

To see how much extra money schools actually received to teach their students, it’s necessary to adjust for wages and students. Having done this, the effective increase was closer to A$2 billion. And 80% of that money went to non-government schools.

Over the decade to 2017, government schools got just 1% more money for teaching students – a miserly A$15.50 per student per year. Think sandwich and milkshake, not specialist teachers or more support for students with disability.

Estonia didn't deliver its PISA results on the cheap, and neither will Australia Government schools got just 1% more money for teaching students in ten years.

Where to from here?

A big problem with how Australia funds our schools is that our best teachers are poorly paid compared to their peers in other careers. This pushes high achieving young people away from teaching.

Yet attracting talented young people into teaching and setting them up for success in the classroom is the best way to boost student results in the long run. The top-ranking education systems invest relentlessly in their teachers, and so should we.

Our recent report, “Attracting High Achievers into Teaching” showed Australia could transform its teaching workforce for just A$620 per student per year. This is one-third of the increase government schools would receive if they got their full “Gonski” allocation.

Most of the extra money would be used to create a structured career pathway to give expert teachers more time to support their peers. This proposal – which builds on recommendation 16 in David Gonski’s 2018 report on how to achieve excellence in Australia’s schools – is what education ministers should be discussing when they meet this week in Alice Springs.

Of course money is never the only answer. But investing in great teachers would pay for itself many times over, because a better-educated population would mean a more productive and prosperous Australia. And it might just be the key to reversing Australia’s PISA woes.

Authors: Peter Goss, School Education Program Director, Grattan Institute

Read more http://theconversation.com/estonia-didnt-deliver-its-pisa-results-on-the-cheap-and-neither-will-australia-128455

Road Signs: Understanding Their Role in Clear and Effective Signage

Effective signage and display hardware can help businesses communicate information, promote products and organise customer or visitor movement. Road...

Bottle Label Printing: Key Factors to Consider Before Your Next Packaging Run

Effective packaging begins with understanding the product, bottle material, artwork and production requirements when planning bottle label printing. H...

Planning a Long-Distance Move With Interstate Movers Melbourne

Moving between states involves more planning than a typical local relocation. Along with packing and transporting household belongings, you need to...

Understanding the Role of an I/O Controller in Industrial Automation

Modern industrial systems depend on accurate communication between sensors, machines and control systems. An I/O controller can help manage this commu...

How the Right Mining Hose Supports Demanding Operations

Mining environments place considerable demands on equipment used for material transfer, water management and processing. Hoses operating in these co...

Simple Ideas for Making Social Gatherings More Memorable

We have all been to those parties where everyone just stands around the kitchen island, staring at their phones, waiting for someone else to make a mo...

Outdoor Wall Lights: Improving Exterior Lighting Around Your Home

Lighting can influence how a room looks, feels and functions, so the right fitting should be selected according to both appearance and practical req...

Commercial Office Cleaning: Combining Routine Office Cleaning With Melbourne Service

Keeping a workplace clean requires a service that can accommodate everyday tasks as well as the particular needs of the business. Professional comme...

Caravan Sales in Queensland: How to Find the Right Caravan for Sale QLD

Caravan ownership is about more than having somewhere to sleep while travelling. For many Queenslanders, it is one of the best ways to explore regio...

What Sir Walter Buffalo Turf Actually Costs in 2026 (And Why Quotes Vary So Much)

Two quotes landed on a Hills District homeowner's kitchen table last spring for the exact same 80-square-metre backyard. One said $12 a metre. The o...

Nearly 1,300 NSW Hospital Beds Are Occupied By People Who Are Ready To Go Home

1,276 people in NSW hospitals have been medically cleared for discharge but remain in hospital because they're still waiting for NDIS or aged care sup...

National Survey Launched to Measure Operational Impacts of Federal NDIS Policy Reforms

The effects of recent NDIS reforms are beginning to move beyond policy papers and into day to day service delivery. A new national survey is asking ...

Beyond the Nappy Cake: Baby Shower Gifts That Get Used

What new Australian parents unwrap, keep, and quietly thank you for months later. Six weeks after my daughter was born, I did an audit of the baby sh...

Parent-Advocates Are Reshaping Frontline Disability Service Delivery

Parents have always been part of the disability sector. They advocate, coordinate services, challenge decisions and often become the person holding ev...

Vista Cruises Enters "Two-Flagship Era" as Vista Aurora Completes Inaugural Voyage

Vista Aurora Sets Sail along the Yangtze. (Photo courtesy of the company)YICHANG, China — August 5, 2026 — Vista Aurora, a high-end interprovinc...

A Digital Preparation Checklist For International Medical Conferences

An international medical conference compresses many responsibilities into a few days. A delegate may need to present research, move between venues, ...

The Growing Popularity of Lab Grown Diamonds in Sydney and Hong Kong

The diamond industry has changed significantly in recent years as more buyers seek ethical, affordable, and sustainable alternatives to mined diamon...

Modern AI SEO Agency vs Traditional SEO: What’s the Difference

Search engine optimisation has changed dramatically over the past few years. Search engines have become smarter, user behaviour has evolved, and bus...