Determinants of Education System in OECD Countries

The education system is subjected to the influence of macroeconomic factors and environmental shocks, under the influence of which the effectiveness and the efficiency of the analyzed social subsystem changes. The purpose of the study is to determine the factors that influence the population number with a certain level of education. Financial macroeconomic indicators and labor market indicators are tested among the regressors. The results of the study based on the development of panel data models for 30 OECD countries during the period of 2000-2016 show that the higher education system is significantly influenced by financial macroeconomic indicators, while the secondary education system is more influenced by labor market indicators. The long-term interest rate was insignificant both for the model built for higher education and for secondary education model, which can be explained by the relatively low level of the indicator in OECD countries. The model with fixed effects is built for higher education system. This model takes into account the individual effects of OECD countries. The choice is made for upper secondary education, based on statistical tests, in favor of the model with random effects, which indicate a relative unification of this stage of education in OECD countries. The conclusions of the study are of practical interest for decision-making at the state level.