Icelandic municipalities allocate just over half of their tax revenues to education, the highest share for this sector among OECD countries, according to a report from Vísir.
Despite this substantial financial commitment, the academic performance of Icelandic students has declined more over recent decades than in most other countries used for comparison, Vísir reported.
Background: Education funding in Iceland
The OECD, or Organisation for Economic Co-operation and Development, compares education systems across its member states. Iceland stands out not only for dedicating a large proportion of local tax receipts to education, but also for allocating a higher share of its gross domestic product to primary education than any other OECD country.
Iceland’s approach reflects a broad municipal responsibility for educational services, with local authorities funding everything from primary schools to kindergartens. Yet reports of declining student outcomes despite these investments present a challenge for policymakers and educators.
Sources
- Vísir (first reported) in Icelandic
- mbl.is in Icelandic
