Private sector spend more on education

08/12/2009 15:00

In 2008 spending on education totalled 37.6 billion euro. This is 2.4 billion euro more than in 2007. Businesses take on an increasing share of spending on education.

Greater share of businesses in education expenditure

In 2008 some 6.9 percent more was spent on education than in 2007. The private sector in particular spent more on education, almost 10 percent more that the year before. Businesses spent more on practical apprenticeship training of students, stimulated by extra government subsidies. The share of businesses in total spending on education has increased in recent years, reaching 8.2 percent in 2008.

Total spending on education in the Netherlands is some 6.3 percent of the gross domestic product (GDP). This share has been stable since 2003.

Spending on education

Spending on education

Businesses invest more in future employees

In 2008 businesses spent 3.1 billion euro on education. Most, almost 2.1 billion euro, was spent on supervising trainees and students who combine work and study. These are mainly students in vocational training (mbo). Businesses also contribute to the costs of the work related training of their employees. Furthermore businesses spent money on research they commissioned at universities.

Spending on education by businesses

Spending on education by businesses

More subsidy for on the job training

The spending on education by businesses is compensated by the government to some extent. In 2008 the government provided 544 million euro worth of subsidies and tax cuts, which is 37 percent more than the year before. The increase is mainly due to several new subsidy regulations that came into force in 2008.

The tax cuts and part of the subsidies are intended to stimulate businesses to provide on the job training for students (373 million euro). These serve as compensation for part of the supervision cost businesses incur. Furthermore part of the subsidy is provided to buy student transport from transport companies. Municipalities buy this transport for students who are unable to travel to school on their own.

Government subsidies to businesses for spending on education

Government subsidies to businesses for spending on education

Daniëlle Andarabi-van Klaveren