Selected Issues Papers

Educational outcomes in Belgium are comparable to peers but achieved at a higher cost. The public wage bill for education is higher than in peers, reflecting smaller student-to-teacher ratios and less teaching time. Yet, Belgium experiences teacher shortages. Reforms should aim at increasing the efficiency of public spending on education while achieving greater equality of educational outcomes and a lower skills mismatch. This would help increase the employment rate, reduce the need for firms to provide training to upgrade skills, boost productivity, and increase the creation and diffusion of innovation. Ultimately, these reforms would improve potential growth.