Croatia’s education and training system is evolving to meet changing economic and social needs. Building on two decades of reforms, the government aims to expand access to early childhood education and care, increase teaching time in schools, modernise tertiary education, and boost adult learning to support upskilling. While Croatia has made progress in enrolment and attainment, challenges remain, particularly in widening early childhood education and care (ECEC) participation, improving transitions to higher education and work, and addressing regional and socio-economic disparities in outcomes. This chapter gives an overview of this wider context, providing background for the analysis and recommendations in the following sections of the report. It offers a comparative overview of Croatia’s education and skills system, focusing on its structure, governance, funding and objectives, and explaining how these relate to the wider socio-economic and political context. The final section examines the major trends in access, learning outcomes, and equity.
Education and Skills in Croatia
Abstract
Over the past two decades, Croatia has made remarkable progress in developing the economy, modernising public administration, and improving living standards. As a result, Croatia compares well with OECD countries on many indicators, such as school access and achievement, female workforce participation, income equality, and life satisfaction among youth. However, sustaining Croatia’s income convergence with OECD standards will require addressing structural challenges, notably low labour productivity and large geographic disparities. Raising the level of education and skills through better policies – the subject of this report - is crucial for this agenda, and increasingly urgent in the face of Croatia’s negative population trends and other global pressures.
This Part of the accession review report provides an evaluation on Croatia’s policies and practices as compared with OECD best policies and practices. It also provides recommendations on how Croatia can draw from OECD evidence and the experience of OECD Members to further advance economic and social development. This introductory chapter provides context and background for the analysis that follows. It offers a comparative overview of education and skills in Croatia and explains how key features of this system relate to wider social, economic, and political conditions and trends.
Socio-economic and political context
Croatia’s living standards have been converging towards those of the OECD, but raising productivity is required to sustain convergence
Croatia experienced robust economic growth over the past decade and national income levels have been converging to the OECD average. Croatia also had the strongest post-COVID-19 recovery among European Union (EU) countries (after Ireland) (see Figure 2.1) (World Bank, 2023[1]). Growth reached 2.8% in 2023 and is projected to be 3% in 2024 (World Bank, 2024[2]). This economic progress is underpinned by a strong tourism sector, rising wages due to a tightening labour market, inflow of EU funds following integration into the eurozone in 2023, and supportive fiscal policies (OECD, 2023[3]; World Bank, 2024[2]). Reconstruction after the 2020 earthquakes and infrastructure investments under the Recovery and Resilience Plan (RRP), including in school infrastructure, are also contributing to Croatia’s growth (OECD, 2023[3]).
Note: 'Peers' is the unweighted average of Czechia, Hungary, Latvia, Lithuania, Slovak Republic, Slovenia, Bulgaria and Romania.
Source: OECD (2024[4]), OECD Economic Outlook 115, http://data-explorer.oecd.org/s/gq; OECD (2024[5]), Productivity Levels, http://data-explorer.oecd.org/s/gr.
Despite this progress, the OECD estimates that Croatia will need to sustain an average Gross domestic product (GDP) per capita growth rate of 3% over the next three decades to fully converge with the OECD average (OECD, 2023[3]). This will require addressing important structural weaknesses in the Croatian economy, especially low workforce productivity (Figure 2.1). On average, workers in Croatia are about two-thirds as productive as those of their peers in the OECD and lag behind the EU average across all sectors of the economy (OECD, 2023[3]). Several factors contribute to Croatia’s low productivity levels, including the regulatory environment and corporate governance, corruption, limited research and development, and the level of skills. Raising skill levels and addressing skill gaps to boost productivity will be crucial in the years ahead as Croatia experiences demographic decline, reducing its workforce (see below).
While labour-market conditions have improved over the past decade, high levels of inactivity and disparities across population groups pose a continued challenge
Croatia’s strong economy has made it easier for people to find jobs. Unemployment for 15–64-year-olds fell by ten percentage points over the past decade to reach 6.2% in 2023, still above the OECD average of 5% (OECD, 2024[6]). However, employment remains below the OECD average by nearly 5 percentage points (65.7% and 70.1% respectively). Workers in Croatia tend to have short working lives, with a relatively low share of youth and older adults in employment (see Figure 2.2) (OECD, 2023[3]). Combined with a shrinking and ageing population, this has led to a tightening labour-market. Employers are now reporting skills shortages in well-established sectors, such as construction, industry, and services (OECD, Forthcoming[7]), and in skills for the green and digital transition (OECD, 2023[3]).
The headline labour-market indicators also mask differences across population groups in Croatia, concealing disparities in labour-market participation and quality of employment. For example, low-skilled occupations are the main driver of Croatia’s employment growth, and the informal economy remains significant (OECD, 2023[3]). Women tend to have even shorter working lives than men, spend around 20 more hours per week on unpaid work, and face ‘glass ceilings’ that limit their pay (OECD, Forthcoming[7]). Finally, low-educated, and disabled workers face poorer labour-market outcomes, with the disability employment gap being one of the largest in the EU (33% compared with 24.4%) (European Disability Forum, 2023[8]).
Employment rates by socio-demographic groups in Croatia and OECD countries, percentage of the working-age population of the indicated group, 2023
Note: Educational attainment based on International Standards Classification of Education (ISCED) 2011. Low: below upper secondary (ISCED levels 0-2); medium: upper-secondary or post-secondary non-tertiary (ISCED levels 3-4); and high: tertiary education (ISCED levels 5-8).
Source: OECD (2024[6]), Employment and unemployment by five-year age group and sex – indicators, http://data-explorer.oecd.org/s/gt; OECD (2024[9]), Employment rates of adults, by educational attainment, age group and gender, http://data-explorer.oecd.org/s/gs.
Croatia has managed to reduce poverty levels, but regional income disparities remain high
Croatia’s economic growth has contributed to improved living standards. Poverty rates declined significantly over the last decade and levels of income inequality (measured by the Gini coefficient of 0.297 in 2023) are on par with EU countries (average of 0.296) (Eurostat, 2024[10]). However, some groups continue to be affected by high levels of poverty, including older workers (particularly women) who are retiring early and living off smaller pensions, Roma, and workers in disadvantaged regions. Croatia's social protection spending is close to the OECD average but has had a smaller impact on reducing poverty and inequality than in most OECD and EU countries. The OECD has recommended better targeting of social protection spending to ensure it reaches those who need it most (OECD, 2023[3]).
With large geographic disparities in economic output, Croatia’s national averages related to poverty and inequality are likely concealing significant regional variations, although precise data is lacking (OECD, Forthcoming[7]). Regional GDP per capita varies from 118% of the EU average in Zagreb, to only 36% in counties in eastern (also referred to as Pannonian) Croatia (see Figure 2.3). Large differences in employment rates also exist across regions, relative to the country’s small size (OECD, 2023[3]). Employment rate growth is the strongest in Zagreb and along the coast, and weakest in the interior and eastern parts of the country.
GDP at current market prices (Euro per inhabitant) by NUTS 3 regions, 2023
Source: Eurostat (2024[11]), Gross domestic product (GDP) at current market prices by NUTS 3 regions, https://doi.org/10.2908/NAMA_10R_3GDP.
The population is shrinking and ageing faster than in most OECD countries
Croatia’s population has been declining rapidly since the early 2010s, dropping by 9.4% to reach below 4 million inhabitants in 2021 for the first time since independence (OECD, Forthcoming[7]). Long-standing emigration of young and skilled workers and low fertility rates are major drivers of this decline. Among OECD countries, only Greece, Lithuania, Latvia, and Japan face a larger population decline. Croatia’s population is projected to drop by a further 19%, reaching 3.1 million by 2060 (see Figure 2.4). The working-age population is most affected by demographic decline and projected to shrink at an even faster rate of 27%, from 2.5 million to 1.8 million over the same period. Remote and economically lagging regions suffer most from depopulation, compounded by internal migration to Zagreb and coastal regions (OECD, Forthcoming[7]).
These population trends have important implications for Croatia’s education system. As the working population shrinks, ECEC will need to expand to bring more women into work and enable them to have longer working lives. Inefficiencies in the school network, resulting from the dual challenge of increasingly small schools in remote areas and a shortage of full day schooling in more economically developed and densely populated areas, will also need to be addressed. Improving access to lifelong learning opportunities will also be important for Croatia to upskill and reskill workers and improve productivity in the face of population decline. The Croatian government has introduced reforms to address these challenges, which will be discussed throughout this report.
Note: The EU average includes all 27 member states of the EU as of 2020, after Brexit.
Source: OECD (2023[3]), OECD Economic Surveys, https://doi.org/10.1787/4f945053-en; Croatian Bureau of Statistics (2023[12]), Migration Population of Republic of Croatia, 2022, https://podaci.dzs.hr/2023/en/58062 (accessed on 10 October 2024).
Croatia’s population is ethnically homogenous, with minority rights protected in law
Over 91% of Croatia’s population identifies as ethnic Croats and a similar share report Croatian as their mother tongue language (Croatian Bureau of Statistics, 2021[13]). Serbs constitute the largest national minority at 3%, followed by Bosniaks and Roma at 0.6% and 0.5% respectively. The rights of national minorities are protected by the Constitutional Law on National Minorities, including, for example, the guaranteed right to education in their language and script. Croatia has taken steps to improve the socio-economic inclusion of minorities, including a tenfold increase in state funding to umbrella associations of national minorities between 2017 and 2022, as well as dedicated initiatives through multi-year Operational Programmes for National Minorities and the National Plan for Roma Inclusion 2021-2027 (OECD, Forthcoming[7]). Measures to improve the integration of national minorities in Croatia’s education and training system and learners’ outcomes are included in sectoral strategies and dedicated programmes. These include co-financing of pre-school programmes fees, offering Croatian language classes for students, and providing university scholarships and accommodation (Republic of Croatia, n.d.[14]).
Croatia is a unitary state with complex governance arrangements
Public governance in Croatia is characterised by a high level of fragmentation, which complicates the efficient and equitable delivery of local public services. While Croatia has four territorial regions used for statistical purposes, political representation and policymaking responsibilities at the sub-national level are held by counties and municipalities and towns (see Figure 2.5). A series of decentralisation reforms (political, administrative, and since 2001, fiscal) have sought to give sub-national governments, in particular municipalities and towns, a bigger role in the design and provision of key public services, including education (Primorac, Martínez-Vázquez and Arizti, 2021[15]). The decentralisation process has resulted in greater complexity, with division of responsibilities across governance levels sometimes unclear and overlapping (Primorac, Martínez-Vázquez and Arizti, 2021[15]). Many of Croatia’s local governments are small, with limited capacities and ability to raise funds. This results in unequal service provision. In education, geographic disparities are particularly evident in ECEC, which is almost fully decentralised and where access, availability, and quality of services vary significantly (see Governance of education and skills system below).
Croatia is planning ways to address the disparities across its sub-national governments. One of the key objectives of the Government Programme 2020-2024 is to support greater fiscal decentralisation and more extensive inter-regional and inter-municipal co-operation (OECD, 2024[16]). Moreover, Croatia’s RRP will develop a digital platform to monitor the capacity of sub-national governments, assessing their ability to meet responsibilities for public goods and service delivery (OECD, 2023[3]). The new platform for monitoring sub-national authorities also aims to encourage greater joint service provision. In education, the central government is already taking a greater role in funding ECEC and school education thorough a new equalisation mechanism (see Funding of the education and skills system below).
Source: Adapted from OECD (2019[17]), OECD Investment Policy Reviews, https://doi.org/10.1787/2bf079ba-en; Primorac, Martínez-Vázquez and Arizti (2021[15]), Fiscal Decentralization in Croatia, http://documents.worldbank.org/curated/en/582501644400447803/Fiscal-Decentralizatio n -in-Croatia (accessed on 5 June 2024).
Perceptions of corruption are high, but Croatia is working to improve public sector integrity
Experience with corruption in Croatia is common and remains higher than in most OECD and EU countries (OECD, 2023[3]). The 2023 Eurobarometer survey revealed that almost all respondents think corruption is widespread in Croatia and one in ten respondents report having witnessed corruption in the last 12 months (European Commission, 2024[18]). These perceived levels of corruption are among the highest in the EU and reportedly reach a range of sectors (see Figure 2.6). In the field of education, one in four respondents stated that giving and taking bribes, as well as abusing power for personal gain are widespread. The adoption of the Anti-Corruption Strategy 2021-2030 promises to have substantial impact on fighting corruption in Croatia (Open Government Partnership, n.d.[19]). Importantly, the Strategy views education as a vehicle for raising awareness about the harmful effects of corruption and the need to combat and prevent it.
Note: The OECD-CEE average includes Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Slovenia, and Slovak Republic.
Source: Eurostat (2024[20]), Corruption Perception Index, https://doi.org/10.2908/SDG_16_50; European Commission (2024[18]), Citizens' attitudes towards corruption in the EU in 2023, https://europa.eu/eurobarometer/surveys/detail/2968 (accessed on 6 June 2024).
Education is central to the Croatian government’s vision for socio-economic development
Croatia outlines its reform priorities in four main strategic documents, the National Development Strategy (NDS) until 2030, the National Plan for the Development of the Education System until 2027, the Government Plan (2020-2024), and the EU Recovery and Resilience Plan (OECD, 2023[3]). These documents provide a roadmap for achieving Croatia’s vision of becoming a competitive, sustainable, inclusive, and globally influential country. To achieve this vision Croatia prioritises raising productivity and innovation, revitalising the population and regional development, improving the efficiency of public administration, and accelerating the green and digital transitions (Republic of Croatia, 2021[21]). Under the policy priority of improving Croatia’s global position, integration into the Schengen area and eurozone, as well as accession to the OECD, are considered main milestones.
Investing in education is recognised across government strategy as one of the main drivers for Croatia’s economic and social development. The central government plans to invest EUR 870 million in a range of education and skills initiatives over the next few years (OECD, 2023[3]). These initiatives include developing digital and green skills, improving ECEC infrastructure and enrolment, adapting school curricula and learning time in schools, as well as providing vouchers for adult education and improving the effectiveness of the public employment service (OECD, 2023[3]). Promoting lifelong learning and improving the quality and labour-market relevance of education are among Croatia’s key levers for achieving national goals.
Structure of education
The Croatian Constitution establishes the right to free, compulsory education that is accessible to all. Compulsory education starts with a mandatory pre-school programme and includes “primary school”, which in Croatia refers to integrated primary (ISCED 1) and lower secondary education (ISCED 2) (see Table 2.1). Upper-secondary school (ISCED 3), known in Croatia simply as “secondary school”, is not compulsory; however, most students also complete this level of education (see below).
Note: Compulsory education in blue.
Source: Adapted from Eurydice (2024[22]), National Education Systems – Overview Croatia, https://eurydice.eacea.ec.europa.eu/national-education-systems/croatia/overview (accessed on 6 June 2024).
While ECEC in Croatia is not compulsory, children who did not attend kindergarten must participate in the mandatory pre-school programme in the year before entry into primary school, at age six. There are significant differences in the age at which countries guarantee children a place in ECEC, but most OECD countries do so from the age of three or earlier (OECD, 2024[23]). Croatia’s pre-school programme also currently lasts only 150-250 hours, much shorter than the 700 hours required to fully qualify as an ISCED 02 programme. The Ministry of Science, Education and Youth (MSEY) is working to expand the mandatory pre-school programme as part of its efforts to expand the ECEC sector more broadly (see Chapter 3).
After completing lower-secondary education, which marks the end of compulsory schooling in Croatia, students can choose between three main upper secondary education pathways – the general programme (also referred to as gymnasium), vocational programmes, and art schools. The vocational pathway offers several programme options (1-2 years, 3-year, and 4-5-year programmes), with varying levels of practical (school and work-based) training.
All upper secondary pathways enable students to progress to tertiary education, either directly or after passing bridging courses in the case of students who complete shorter vocational pathways. For all students, transitioning into tertiary education requires passing the State Matura, the results of which are taken into consideration in decisions on entry to different programmes, alongside other criteria. Students can pursue academic study programmes at undergraduate (bachelor’s), graduate (master's) and postgraduate (doctoral) levels in universities or professional study programmes in polytechnics. Other than higher education, there is a notable gap in the provision of (and participation in) other types of post-secondary education and training offers (ISCED 4 and 5).
Public provision dominates most levels of education, except for adult education and increasingly ECEC
The education and training system in Croatia is predominantly state-run and public (see Figure 2.7). As of 2022, 94% of students were enrolled in public institutions across educational levels, compared to 72% on average across the OECD (OECD, 2024[24]). ECEC and adult education stand out as being the two levels where the private sector plays a larger role, although data on the latter sector is lacking. For example, the majority (76%) of ECEC capacity added between 2012 and 2018 in Croatia was private (Eurydice, 2024[22]). Some sub-national governments in Croatia rely on the private sector to expand access to ECEC, as they can offer lower wages thus, helping keep costs low. This is not uncommon across OECD and EU countries, which have enabled - and sometimes encouraged - the private sector to fill gaps in public provision.
Enrolment in public institutions (full-time equivalent)
Source: OECD (2024[24]), Distribution of enrolled students and graduates by type of institution, http://data-explorer.oecd.org/s/gy.
Geographic disparities in education provision are marked
Availability of education in Croatia varies across regions, largely mirroring economic disparities and demographic trends. Almost half of rural municipalities (40%) have no nurseries, and a quarter have no kindergartens (European Commission, 2021[25]). Student population decline in remote areas has led to a proliferation of small schools that are costly to run and unable to provide a diversity of secondary education programmes (Ministry of Science, Education and Youth, 2023[26]; European Commission, 2022[27]). Densely populated areas, on the other hand, have insufficient school infrastructure and operate on multiple shifts. Under the RRP, Croatia is investing in infrastructure for ECEC and school settings to support a better balance in the educational offer across the country. This can support Croatia’s goal of demographic and economic revitalisation of remote areas.
Over two-thirds of upper secondary students pursue vocational programmes, but options for post-secondary VET are limited
Compared to international peers, Croatia has among the highest rates of enrolment (70%) in upper secondary VET, exceeding the OECD (42.4%) and EU averages (50.5%), but in line with some OECD‑CEE countries such as Czechia (69.1%), Slovenia (69.8%), and the Slovak Republic (67.6%) (OECD, 2023[28]). About two-thirds of upper secondary VET students enrol in 4–5-year programmes, which are largely school-based and tend to be poorly aligned with labour-market needs (see Chapter 4) (OECD, Forthcoming[7]). On the other hand, shorter programmes (1-3 year), which are more practically oriented, are increasingly unpopular as they do not offer students the possibility to (directly) continue into higher education. Limited work-based learning, combined with outdated curricula and skills mismatch, hinder VET graduates’ transition into the labour market. As a result, Croatia’s upper secondary VET programmes are generally perceived as unattractive, despite their high enrolment rates (OECD, Forthcoming[7]). However, Croatia plans to modernise its VET system by revising curricula, expanding work-based learning and dual VET programmes, as well as introducing a modular model to improve alignment with the labour market (CEDEFOP, 2021[29]).
Besides higher education, VET graduates have limited options for post-secondary education and training, which are either absent or severely underdeveloped (see Chapter 6). Notably, no programmes offer post‑secondary, non-tertiary (ISCED 4) qualifications (Eurydice, 2023[30]). In 2024, there were only five accredited short cycle study programmes, which last two years and culminate in an associate degree certificate (ISCED 5) (Ministry of Science, Education and Youth, n.d.[31]). This contrasts with the 645 undergraduate programmes (ISCED 6) and 723 graduate programmes (ISCED 7) offered across the country. As a result, only 0.1% of tertiary graduates completed short cycle professional studies in 2021 (Croatian Bureau of Statistics, 2022[32]). Many VET students enrol in higher education (61% in 2020), although they are reportedly more likely to drop-out due to their lack of preparation for academic study (see Chapter 5) (European Commission, 2021[25]).
Governance of the education and skills system
Croatia’s Ministry of Science, Education and Youth sets education and skills policies centrally and specialised national agencies support their implementation
The Croatian education and skills system is centralised under the authority of the MSEY. Both cycles of ECEC (ISCED 01 and 02) are integrated and overseen by the MSEY, which co-ordinates with the Ministry of Health and Ministry of Labour, Pension System, Family and Social Policy (hereafter, Ministry of Labour) on health and social assistance matters. Likewise, the MSEY shares responsibilities with the Ministry of Economy, regarding implementation of programmes for acquiring craft occupations (ISCED 03), which are mainly carried in the economy, for a minimum of 70% of the practical part of apprenticeship has to be implemented in the workplace – in a licenced craft business or legal person. Around half of OECD countries have integrated systems for ECEC governance (OECD, 2019[33]), which can help ease transitions through the early years of education and into primary education. The MSEY is the primary body responsible for school and tertiary education but shares responsibility for skills and adult learning with the Ministry of Labour and other bodies. While complex skills governance arrangements are not unique to Croatia, the sector is particularly fragmented, with different Ministerial bodies and agencies responsible for overlapping policies (see Chapter 6).
Croatia has several national agencies that provide the MSEY with technical support. These agencies roughly correspond to different sectors of the system and fulfil specialised functions, such as evaluation and staff development (see Figure 2.8). Most national agencies have some independence in how they implement policies but report to and follow policy directions set by the MSEY. However, shortages of qualified staff and inefficient sharing of responsibilities across national bodies limits capacity. For example, both the Education and Teacher Training Agency (ETTA) and the Inspectorate have responsibilities to evaluate ECEC and school settings, but external evaluations do not occur on a regular basis because the necessary human resources across both bodies are limited.
Source: Adapted from Ministry of Science, Education and Youth (2023[26]), Accession candidate country's self-assessment of policies and practices in the area of education and skills.
Sub-national governments share some responsibilities for the education system but disparities in their capacities create challenges for delivery
Responsibilities at the sub-national level vary by stage of education. ECEC is highly decentralised with sub-national authorities responsible for determining local needs, establishing, and financing kindergartens, as well as delivering and monitoring the work of staff (alongside central agencies). Instructional policy in the school sector remains highly centralised but sub-national governments manage the school network, provide co-financing alongside the central government, and oversee the infrastructure, capital investment and maintenance of schools in their territory. Responsibilities for tertiary and adult education are shared between the MSEY and institutions, some of which can be owned by sub-national government authorities. Croatian universities have the choice to be integrated institutions or for their faculties or academies to serve as separate legal entities, further complicating governance of the higher education sector (see Chapter 5).
The asymmetrical decentralisation of responsibilities for different levels of education and skills across different levels of government has resulted in regional disparities and inefficiencies. For example, the autonomy sub-national governments have over planning, delivery, and funding of the ECEC sector has led to a variation in enrolment criteria, fees, staff salaries, and availability of ECEC places across the country (World Bank, 2019[34]). To address these disparities, the central government is creating a national network of kindergartens to improve planning and availability in remote and less developed areas (European Commission, 2023[35]). While sub-national governments have the authority to open and close schools, they do not receive support or incentives from the central government to optimise the school network. In adult learning, limited strategic planning and oversight at the national level has led to misalignments between local training offers and skill needs, for example, through course overlaps or shortages in certain disciplines (see Chapter 6) (European Commission, 2023[35]).
Croatia is taking steps to improve transparency and increase public participation in the policymaking process
Over the past decade, Croatia has developed the legal and policy framework to enhance stakeholder engagement in policymaking, which compares well with many OECD countries (OECD, 2019[36]). Since 2013, public consultation is required for the issuance of new regulations, decisions, and strategic and planning documents. These processes are facilitated by a centralised online platform. Nonetheless, the OECD found that there is room to improve awareness about the consultation process and systematically involve all stakeholders earlier in policymaking (OECD, 2019[36]). Engagement channels could also be made more coherent. For example, in the skills sector, several bodies have been established to provide input on policy (see Figure 2.8) but their institutional set-up seemingly dilutes their collective influence and makes it harder for the government to collect feedback (see Chapter 6).
Croatia has digitalised available data on education and skills, but capacity to use this information for policymaking remains limited
Croatia collects a range of data on the education and skills system, including statistical data on education inputs and data on students’ learning and well-being. Nonetheless, important data gaps remain across education levels. For example, data on the quality of education activities in ECEC is not collected at sub‑national or national levels (see Chapter 3). The introduction of the new national learning assessment aims to expand available standardised data on students’ outcomes (see Chapter 4). However, Croatia currently does not have a centralised register of individual students that can enable monitoring of their progression in, through and beyond the education and training system (see Chapter 6).
While much of Croatia’s education and skills data is publicly available, it is not regularly analysed and disseminated in ways that actors can use to inform policy and practice. For example, while the National Centre for External Evaluation of Education (NCEEE) prepares national reports on OECD Programme for International Student Assessment (PISA) and other standardised assessments, the results are not presented to teachers and school leaders in ways that can help improve teaching and learning. This could be attributed to a reported lack of capacity within the MSEY to analyse, use and disseminate data. However, even in cases where data is digested and recommendations are presented, they do not seem to meaningfully inform policy. For example, the Croatian Employment Service (CES) analyses labour-market information and presents annual recommendations for adjusting the number of training places in higher education and VET programmes. However, CES recommendations are rarely taken into consideration in decisions on provision, which are often driven by inputs, such as existing personnel and equipment (see Chapter 5).
Funding of the education and skills system
Government spending on education has been moving closer to OECD and EU levels but per-student spending remains comparatively low
Supported by Croatia’s robust economic growth, government spending on primary to tertiary education steadily increased over the past decade from USD 2.8 billion in 2015 to 4.0 billion in 2021 at Purchasing power parity (PPP) in constant prices (OECD, 2024[37]). In comparative terms, government spending as a share of GDP stood at 3.4% in 2021, which is below the OECD-CEE (3.7%), OECD-EU (3.9%) and OECD average (4.2%) (see Figure 2.9). Spending on education as a share of total government expenditure is -at 7.2% - also below the OECD-EU and OECD average (9% and 10.1% respectively) (OECD, 2024[38]).
This increase in absolute government spending on education, combined with a student population decline, has led to an increase in per-student spending from USD 4 602 in 2012 to USD 8 009 in 2021. Nevertheless, per-student spending levels remain below the OECD-EU (USD 12 220) and OECD (USD 12 163) averages and are one of the lowest among peer countries (Figure 2.9). There are no stated plans to significantly increase spending on education as a share of government expenditure. Most additional new investment in education comes from EU sources, notably the RRP (see below).
Note: The OECD-EU average includes the 25 countries that are members or accession countries of both the EU and the OECD (Austria, Belgium, Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, and Sweden). Government expenditure on educational institutions encompasses funding allocated from primary to tertiary levels.
Source: OECD (2024[39]), Distribution of government, private and non-domestic expenditure on educational institutions, http://data-explorer.oecd.org/s/hs; OECD (2024[40]), Expenditure on educational institutions per full-time equivalent student, http://data-explorer.oecd.org/s/ht.
Most of the education and skills system is publicly funded
Public spending on education in Croatia – from ECEC to the tertiary level - accounts for around 81% of total expenditure in 2021 (OECD, 2024[37]). However, there is some variation across levels of education (see Figure 2.10). Notably, the share of private spending on ECEC was higher (26.9%) than the OECD average (14.6%) in 2021. ECEC in Croatia is not free (except for one year of pre-school education) and sub-national governments have the autonomy to set fees at this level. For tertiary education, private spending (27.3%) was higher than most OECD-EU countries (19.6%) but lower than the OECD average (28.6%) in 2021, mostly coming from tuition fees. Adult education is mostly privately funded (although data is lacking). Exceptions include some funding from the state and sub-national governments, as well as the new voucher scheme whose scope remains limited.
Croatia’s central government primarily funds school and higher education, while sub-national governments fund ECEC
As of 2021, Croatia’s central government provides about three-fourths (76%) of total government expenditure across all levels of education, and the remaining one-fourth (24%) comes from the budget of sub-national authorities (OECD, 2024[37]). However, the distribution of funding sources varies across education levels (see Figure 2.10). Notably, almost all public spending on ECEC comes from sub‑national budgets, while almost all public spending on tertiary education comes from the central budget. In schooling, sub-national authorities contribute around 14% of total government spending to primary and secondary education, which covers their co-financing responsibility and pays for school infrastructure, equipment, transportation, and meals.
Croatia is introducing reforms to improve the efficiency of funding across education levels and reduce inequalities arising from current funding arrangements. The central government recently introduced an equalisation fund, whereby transfers are made to sub-national governments based on their development level. The equalisation fund is meant to cover the gap in meeting minimum funding standards for public provision of ECEC and schooling and reduce regional inequalities in access and quality. Moreover, performance-based funding was introduced for tertiary education in 2023 and represents an important step towards better financial and performance management of publicly funded tertiary institutions.
Note: In Panel B, sub-national government refers to state and/or local governments.
Source: OECD (2024[39]), Distribution of government, private and non-domestic expenditure on educational institutions, http://data-explorer.oecd.org/s/hs; authors calculations based on OECD (2024[37]), Full dataset - Indicators, source, destination and nature of expenditure on education, http://data-explorer.oecd.org/s/hq.
EU funds can help stimulate reform in the education and skills sector
EU funds are an important source of funding for the education sector in Croatia. Over the past decades, Croatia has received substantial amounts of EU funds relative to its size and has managed to improve its absorption capacity (OECD, 2023[3]). EU funds have constituted a larger share of overall public investment spending than in most other EU countries. At 9.5% of 2021 GDP, Croatia’s RRP has the second largest allocation relative to GDP of any country (OECD, 2023[3]). Almost two billion euros will be invested in education and research under the RRP, out of around EUR 5.8 billion in grants (European Commission, 2024[41]). RRP funds are contributing to infrastructure investment projects to expand access to ECEC (around EUR 215 million) and support the shift to whole-day schooling (around EUR 380 million), with the total amount further increased to EUR 871 million following additional loan resources (European Commission, 2022[27]; Government of the Republic of Croatia, 2022[42]; Republic of Croatia, 2021[21]; 2023[43]). The adult learning voucher scheme was also introduced with EUR 60 million of EU funds. Croatia’s reliance on EU funds risks creating challenges in terms of the sustainability and coherence of reforms, which increases the importance of strengthening government capacity for financial planning.
Objectives of the education and skills system and main reforms
The National Development Strategy 2030 guides strategic planning across all sectors, including education and skills
The NDS represents the first cross-sector development strategy adopted by Croatia. While broad vision documents and a collection of strategic planning documents existed previously, the NDS stood out for the comprehensive, evidence-based, and participatory development that led up to its adoption in 2021 (World Bank, 2020[44]).The NDS is intended to provide strategic guidance to all development policies and inform sector-specific strategic planning. The National Plan for the Development of Education and Training until 2027, and its accompanying action plans, aim to implement the strategic goals and priority areas from the NDS that relate to education (see Box 2.1). While the adoption of the NDS and sector plans was a significant step for Croatia, there is room for further improvement of strategic planning within the education and skills system to support the achievement of stated goals. For example, the ECEC and higher education sectors lack comprehensive strategies that provide adequate direction to stakeholders on the necessary actions, responsibilities, and timelines for the achievement of reform priorities (see Chapter 3 and 6).
The National Development Strategy until 2030 lays out a long-term vision for Croatia, notably aiming to enhance its sustainable economic and social development, resilience to crises, green and digital transitions, and balanced regional development. This strategic document highlights fostering 'educated and employed people' as the second national priority (out of 13), following a competitive and innovative economy. It underscores the importance of aligning educational outcomes with labour-market needs to cultivate a skilled and competitive workforce that is prepared for the demands of an increasingly digital and global job market.
The National Plan for the Development of Education and Training until 2027 is the medium-term strategic document designed to implement the priority areas from the National Development Strategy 2030 that relate to education. It lists ten specific goals to be achieved by 2027, among them: providing access to pre-school education for all children, improving students’ educational outcomes (including fundamental and professional competencies), continuing the introduction of Information and Communication Technologies (ICT) at all levels, increasing higher education completion rates, and enhancing the employability of graduates. The plan also emphasises inclusion and equal access to quality education, aiming to reduce regional disparities and support students from disadvantaged backgrounds.
The Action Plan for the Implementation of the National Plan for the Development of Education and Training until 2024 outlines a series of short to medium-term measures designed to achieve the overarching goals of the National Plan for the Development of Education and Training. The implementation plan specifies target outcomes, timelines, action items, responsible authorities, and allocated resources for each measure. For example, the plan aims to increase the employment rate among recent VET graduates to 75% by 2027 through actions like developing a new VET curriculum, establishing regional centres of competence, and providing inclusive financial support mechanisms.
Sources: Republic of Croatia (2021[21]), National development strategy of the Republic of Croatia until 2030, https://narodne-novine.nn.hr/clanci/sluzbeni/2021_02_13_230.html (accessed on 7 June 2024); Ministry of Science, Education and Youth (2023[45]), National Plan for the Development of Education and Training until 2027, https://mzom.gov.hr/UserDocsImages/dokumenti/Obrazovanje/Ak cijskiINacionalniPlan/Nacionalni-plan-razvoja-sustava-obrazovanja-za-razdoblje-do-2027.pdf (accessed on 7 June 2024); Ministry of Science, Education and Youth (2023[46]), Action Plan for the Implementation of the National Plan for the Development of Education and Training until 2024, https://mzom.gov.hr/UserDocsImages/dokumenti/Obrazovanje/AkcijskiINacionalniPlan/Akcijski-plan-za-provedbu-Nacionalnog-plana-razvoja-sustava-obrazovanja-za-razdoblje-do-2024.pdf (accessed on 7 June 2024).
Croatia’s current reform priorities build on previous efforts
In the last 20 years, education reforms in Croatia have focused on enhancing the quality of education and its labour-market relevance, harmonising with European systems, and improving the governance and monitoring of the system. Current priorities for the sector aim to accelerate the contributions education can make to Croatia’s broader economic and social development, capitalising on available EU funds for reforms. The main priorities for the education sector include (Ministry of Science, Education and Youth, 2023[46]):
Expanding participation in ECEC by building infrastructure, addressing staff shortages, and developing the pre-school curriculum to align fully with ISCED 02. A key target is to increase the participation rate of children aged 3 to primary school age to 90% by 2027, up from 79% in 2020.
Improving student outcomes by increasing teaching and learning time through the Whole Day School reform and improving the quality and relevance of VET. Croatia aims to almost double the share of students in single-shift primary schools from 38.7% in 2020 to 70% by 2027 to allow for whole day schooling.
Modernising the higher education system by improving its governance, enhancing its labour‑market relevance, and making it more inclusive to a wider range of students. With these, Croatia aims to increase the completion rate in higher education from around 37% of 25–34-year-olds in 2020 to 45% by 2027.
Improving access to and quality of adult learning opportunities to encourage upskilling and reskilling of the working-age population in priority areas, notably digitalisation and green skills. By 2027, Croatia’s aims to have 5.5% of adults (25–64-year-olds) reporting their participation in education and training in the last four weeks, up from 3.2% in 2020.
Access and participation
Expanding participation in ECEC is a priority for Croatia
Over the past decade, participation in ECEC has grown steadily. Between 2013 and 2023, enrolment rates increased by 11 percentage points for children aged below 3, and by 18 percentage points for children aged three to five (OECD, 2024[23]). Today, enrolment for children below age three is slightly above the OECD average, though for children aged three to five the enrolment gap remains (76% compared to 83%) (see Figure 2.11) (OECD, 2023[28]). Croatia’s current reform objectives aim to bring enrolment rates closer to the Barcelona targets adopted by the European Council, which are set at 45% for children under age three and 96% for children between age three and the starting age of primary school by 2030 (Official Journal of the European Union, 2022[47]).
Enrolment rates in ECEC by age, 2022
Note: Countries are sorted in descending order of the average enrolment (0 to 5 years-old).
Source: OECD (2024[23]), Education at a Glance 2024, https://doi.org/10.1787/c00cad36-en.
Most students complete upper secondary school and many pursue higher education
Croatia has achieved near universal enrolment in primary and lower secondary education and most students continue onto upper secondary education, even though it is not mandatory (see Figure 2.12). Indeed, Croatia has the lowest share of early leavers from education and training in the EU, at only 2% in 2023, compared to the EU average of 9.5% (Eurostat, 2024[48]). As of 2022, around 97.2% of 20–24-year-olds had attained upper secondary education, above the EU average of 83.6% (European Commission, 2023[49]). Among upper secondary education graduates, most students from general (97%) and vocational programmes (67%) choose to pursue higher education (ISCED 6+) (Glavas, Matic and Prsa, 2021[50]). This high rate of transition into higher education is partly explained by Croatia’s limited post-secondary education landscape and difficult school-to-work transition. There are also incentives for students to pursue higher education, which offers subsidised fees for full-time study.
Total net enrolment rate for primary, lower secondary and upper secondary education, 2014 and 2021
Note: In the OECD average, data for Japan for 2021 is missing.
Source: UNESCO UIS (2024[51]), Total net enrolment rate by level of education, http://data.uis.unesco.org/#.
Participation in tertiary education is increasing among young Croatians, but tertiary attainment remains low for the overall population
Gross enrolment in tertiary education increased from 57.1% in 2010 to 72.3% in 2021 (UNESCO UIS, 2024[52]). This increase can be partly attributed to the growth in upper secondary attainment, which expanded the pool of eligible applicants to higher education. Croatia also enacted policies to make higher education more accessible by providing expanded financial support to students, such as scholarships, transportation, and meals. As a result, the tertiary attainment rate among young adults (25–34-year-olds) has been rising over the last decade (see Figure 2.13). At 38.7% in 2023, this rate is still slightly below the EU (43.1%) and OECD-CEE average (41.9%). Nonetheless, across Croatia’s overall population (25–64-year-olds), attainment is generally clustered at the mid-level (ISCED 3-5) with a smaller share of adults achieving higher education (28.7%) compared to the EU and OECD-CEE averages (35.1% and 35.6% respectively) (Eurostat, 2024[53]).
Note: In Panel B, 'Low' educational level corresponds to the completion of at least some primary (ISCED 0), primary (ISCED 1) or lower-secondary education (ISCED 2); ‘Lower-mid' level corresponds to the completion of upper-secondary education (ISCED 3); 'Upper-mid' level corresponds to the completion of post-secondary non-tertiary (ISCED 4) or short cycle tertiary (ISCED 5); 'High' level refers to completion of a Bachelor’s (ISCED 6), Master’s (ISCED 7) or Doctoral (ISCED 8) degrees.
Source: Eurostat (2024[54]), Sustainable Development Indicators, https://doi.org/10.2908/SDG_04_20; OECD calculations based on UNESCO UIS (2024[55]), SDG-4 Indicator Dashboard, http://sdg4-data.uis.unesco.org/.
Croatia has one of the lowest participation rates in adult learning in the EU
In 2023, only 6.4% of adults (aged 25 to 64) in Croatia reported having participated in formal or non-formal education and training in the past four weeks (Eurostat, 2024[56]). This rate is well below the EU average (12.8%). Several factors contribute to low participation rates, including costs, scheduling, attitudes towards lifelong learning, and notably, distance. Participation rates are particularly low among the less educated. Less than one percent of adults who had lower than primary or lower secondary education reported participating in education and training in the last 4 weeks in 2023, compared to twelve percent for those with tertiary education (Eurostat, 2024[57]). While this trend is not uncommon across EU countries, it underscores how current adult education policies in Croatia are not reaching those who would benefit the most (see Chapter 6).
Quality and outcomes
Learning outcomes are on par with the OECD average but the share of students who do not reach baseline proficiency levels has not improved over the past two decades
In the 2022 OECD Programme for International Student Assessment (PISA), Croatia's 15-year-old students performed close to the OECD and EU averages in reading and science, but lower in mathematics. However, Croatia’s PISA results have not improved since the country’s first participation in 2006 (see Figure 2.14). In science, Croatia’s results from 2022 were even significantly below those of 2006, although there was an upward trend compared to the previous cycle. Overall, Croatia’s PISA performance has stagnated, partly because the country has not been able to decrease its share of low performers (scoring below baseline level of proficiency, level 2), nor increase its share of top performers (scoring above level 5) since 2009. Croatia’s younger students in grade 4 perform above average in math and science on the Trends in International Mathematics and Science Study (TIMSS) and performance has improved since 2011.
PISA performance trends in Croatia from 2006 to 2022
Source: OECD (2023[58]), PISA 2022 Results (Volume I), https://doi.org/10.1787/53f23881-en.
Instruction time in Croatia is comparatively low but is set to expand with the Whole Day School reform
On average, Croatian students spend only 4 541 hours of learning time in primary and lower secondary education, compared to 7 634 hours across OECD countries (OECD, 2023[28]). This is partly the result of long school holidays and short school days, related to the fact that in some parts of the country, schools operate in multiple shifts. Findings from PISA 2022 reveal that increases in learning time - up to a certain amount - can help improve performance (OECD, 2023[59]). Croatia’s Whole Day School reform aims to extend instruction hours as well as provide more remedial or enrichment opportunities to support student learning. The reform is expected to provide greater flexibility for principals and teachers in organising how to use this additional learning time. This represents an important shift, as principals in Croatia currently report having less significant responsibility for instructional leadership and perceive decisions on course offer and content to be centrally prescribed (see Chapter 4) (OECD, 2020[60]).
Transitioning into work is difficult for many Croatian students but there are signs of recent progress
The school-to-work transition is difficult for many Croatians. Contributing factors to this situation include poor labour-market alignment of upper secondary VET programmes and a limited post-schooling education and training offer. In 2022, more than 13% of recent upper secondary or post-secondary non-tertiary graduates in Croatia were not in education, employment, or training (NEET) in the one to three years following graduation (OECD, 2023[28]). This exceeds the OECD and OECD-EU averages of 9.6% and 9.9% respectively. The NEET rate is even higher for graduates from vocational programmes at around 19%, compared to around 15% in the OECD and OECD-EU on average.
Further education does not necessarily facilitate this transition. Employment rates for tertiary graduates in the first years after graduation are among the lowest across Europe (79% compared to OECD-EU and OECD averages of 87% and 88% respectively), although they converge to the OECD and OECD-EU average five years post-graduation (OECD, 2023[28]). NEET rates of young tertiary graduates one to three years after graduation also exceed the OECD-EU average (12.7% compared to 9.3%) (OECD, 2023[28]). Positively, Croatia has seen rapid progress in reducing the overall share of youth NEET. In 2023, this was 13.9% and is now on par with the OECD average (13.7%) (OECD, 2024[23]).
Equity
Geographic disparities in participation and attainment are present across education levels
Education opportunities in remote and less developed areas in Croatia lag behind the capital and large cities along the coast, especially as learners’ progress into higher levels of education and training (see Structure of education above). National data suggests that geographic disparities start early. In 2018, less than 40% of children aged 3-6 who lived in eastern Croatia’s economically lagging counties were enrolled in ECEC, compared to more than 70% in Zagreb and more developed counties (UNICEF, 2020[61]). PISA 2022 also reveals geographic disparities in the quality of school education: Croatian students who attend schools in urban areas significantly outperformed those from schools located in villages or small towns (up to 15 000 inhabitants) by 46 score points in maths (OECD, 2024[16]).
While tertiary education institutions operate in 27 cities across the country, enrolments are concentrated in Zagreb and urban parts of Croatia’s coastal region, impacting participation and attainment trends. Participation in adult learning of 25–64-year-olds was highest in the City of Zagreb (11.3% in the four weeks prior to the survey in 2023), followed by Adriatic (6.3%), northern (4.6%), and eastern (4%) regions (Eurostat, 2024[62]). Tertiary attainment in the City of Zagreb, where most young Croatians come to study, was nearly two to three times higher (around 50%) than in the northern (around 22%), Adriatic (around 29%), and eastern (around 17%) regions of Croatia (Eurostat, 2024[63]). While tertiary attainment is close to the EU average in cities, towns, and suburbs, it is particularly low in rural areas (8 percentage point difference with EU average) (Eurostat, 2024[64]).
Socio-economic status contributes to gaps in students’ educational opportunities and outcomes
In Croatia, a student’s socio-economic status influences their learning outcomes, although to a lesser extent than on average in the OECD and EU. In Croatia, almost half of disadvantaged students (43.7%) performed below level 2 in PISA 2022 – a share almost three times higher than that of advantaged students (14.1%) (European Commission, 2024[65]). The performance gap (82 score points in mathematics) is, however, lower than the OECD and EU averages (93 and 98, respectively) (see Figure 2.15). Nevertheless, features of the education and skills system continue to place learners from poorer backgrounds at a disadvantage. In 2020, Croatia had the highest gap in ECEC participation (age 3 until minimum mandatory school age) in the EU between children at risk of poverty and social exclusion and those not at risk (European Commission, 2022[27]). Attendance of quality ECEC programmes can raise achievement levels of all children, particularly those from disadvantaged backgrounds, by extending and enriching the learning and development experiences in their home environments (OECD, 2023[66]) . Disadvantaged students are also more likely to be concentrated in Croatia’s upper secondary VET programmes, with 45% enrolment gap, compared to 11% in the OECD according to PISA 2022 (OECD, 2023[58]). At present, upper secondary VET in Croatia does not adequately prepare students to enter the labour market nor continue their studies at the tertiary level, which can have marked impact on learning and labour outcomes later in life.
Note: The EU average contains the 26 EU countries that took part in PISA 2022 and does not include Luxembourg.
Source: OECD (2023[58]), PISA 2022 Results (Volume I), Table I.B1.4.2, Table I.B1.4.3, Table I.B1.4.4, Table I.B1.4.17, Table I.B1.4.18, Table I.B1.4.19, https://doi.org/10.1787/53f23881-en.
Gender gaps persist at different points in the life cycle
In Croatia, girls perform better than boys in some core school subjects and go on to have higher rates of tertiary attainment. In PISA 2022, 15-year-old girls outperformed boys in reading by 34 score points and in science by 11 score points (Figure 2.15). In contrast, the gender gap across the OECD was only 24 points in reading and 0 points in science. Girls in Croatia are also more likely than boys to be enrolled in general upper secondary programmes (15.4 percentage point difference, compared to 3.3 in the OECD), according to PISA 2022. More women between the ages of 25 and 34 in Croatia had attained a tertiary education (49.5%) compared to men (28.8%) in 2023 (Eurostat, 2024[54]). These gaps in achievement and attainment constitute some of the largest gender gaps in the OECD and EU and suggest that boys in Croatia may need greater support to engage in learning.
Higher levels of education attainment and achievement, however, do not translate into better outcomes for women in the workforce. The gender employment gap in Croatia is narrow at around 10-percentage points, compared to 15 on average in the OECD, owing to overall low rates of employment for both genders (see Socio-economic and political context above). While the pay gap is also relatively narrow (about 8% of median earnings compared to 13% in OECD), women still earn less than men and spend nearly 20 hours more per week on unpaid work – the highest value across European countries (OECD, Forthcoming[7]). This can be partly attributed to the low availability of formal ECEC services, which – combined with inflexible working conditions – may force some women to leave the labour force early or for extended periods of time (OECD, 2023[3]).
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