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Expert Network on Economics and Sociology of Education and Training (ENESET)
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Impact of Finnish budget cuts on access and quality of education

Finland’s education cuts haven’t blocked access but may harm quality—especially in vocational training. Output-based funding and stagnant intake raise concerns for equity and learning outcomes.

Details

Publication date
31 March 2018
Author
European Expert Network on Economics of Education (EENEE)
Geographical scope
  • European Union
  • Finland
Level of education focus
  • Higher education
  • School education
  • Vocational education and training (VET)
Thematic areas covered
  • Educational attainment and participation in education
  • Investment in education, economic impact of education
  • Monitoring and quality assurance

Description

This report analyses the effects of recent budget cuts in Finland on access to and quality of secondary and higher education. While access has largely remained stable due to degree quotas and municipal co-financing, the quality—particularly in vocational education—may be declining due to reduced per-student funding. 

The funding model is shifting toward output-based financing, rewarding degree completions rather than educational inputs or quality. There is concern that such models incentivize quantity over quality, potentially lowering academic standards. 

Despite Finland’s relatively high teacher pay, learning outcomes have been declining, as evidenced by falling PISA scores and cognitive test results. Access to higher education is further constrained by stagnant intake quotas, potentially exacerbating socioeconomic inequality. Changes to student aid policies may also influence access, but the long-term effects remain unclear.

Author

Allan Seuri

Cite as

Allan Seuri (2018). 'Impact of Finnish budget cuts on access and quality of education', EENEE Ad hoc Report 1, 2018

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  • 31 MARCH 2018
Impact of Finnish budget cuts on access and quality of education