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Sept. 15, 2025

OECD Report Highlights Challenges in Higher Education in Brazil: Dropout Rates, Inequality, and Limited Return on Investment

Bett Blog Editorial Team
OECD Report Highlights Challenges in Higher Education in Brazil: Dropout Rates, Inequality, and Limited Return on Investment
Photo: Tânia Rêgo/Agência Brasil
The study provides educational data such as student performance, enrollment rates, and the organization of educational systems

Having a college degree in Brazil is still a major advantage in the job market: adults aged 25 to 64 with a college degree earn, on average, 148% more than those who have only completed high school, well above the OECD average of 54%.

Even so, few Brazilians reach this level. According to the Brazilian Institute of Geography and Statistics (IBGE), only one in five—that is, 20.5%of Brazilians aged 25 or older have a college education, based on 2024 data.

The data are in the report *Education at a Glance 2025*, published by the Organization for Economic Cooperation and Development (OECD), which presents educational data such as student performance, enrollment rates, and the structure of educational systems in the organization’s 38 member countries, as well as Argentina, Bulgaria, China, Croatia, India, Indonesia, Peru, Romania, Saudi Arabia, South Africa, and Brazil.

The study shows that, despite the potential impact of higher education, Brazil faces high dropout rates and low completion rates. One in four students drops out during their first year —nearly double the OECD average (13%). Only 49% complete their undergraduate degree even three years past the expected time, compared to the international average of 70%. Among 25- to 34-year-olds, only 24% of young Brazilians complete higher education, half the OECD rate.

The OECD warns that this early dropout rate may reflect a lack of career guidance and support for incoming students, as well as a mismatch between expectations and the reality of the programs. The report also highlights gender inequalities: in Brazil, 53% of women complete their undergraduate degrees, compared with 43% of men.

The "Neither-Nor" Generation and Public Investment

Another critical issue is the proportion of young people who are neither in school nor employed. In 2024, 24% of Brazilians aged 18 to 24 were in this situation (NEET), compared with an OECD average of 14%. The gender gap is a cause for concern: 29% of Brazilian women and 19% of Brazilian men were neither in school nor employed.

In the area of investment, the report states that Brazil spends $3,765 (about R$20,000) per higher education student, in 2022 terms, which is well below the OECD average of $15,102 (about R$80,000).

However, the Anísio Teixeira National Institute for Educational Studies and Research (Inep) disputed the figures and requested a review, pointing out that actual public spending is US$15,619 (about R$83,000) per student at public universities, which is above the international average. The discrepancy arises because the OECD considers the entire system (public and private), while Inep calculates only government investments in public institutions, which account for about 20% of enrollment in the country.

According to OECD Secretary-General Mathias Cormann, low higher education completion rates undermine the return on public investment and exacerbate the skills shortage. He advocates for measures such as improved academic preparation and career guidance in high school, clearer curricula, and flexible and inclusive higher education options that cater to different student profiles.

Despite its potential to raise incomes and reduce inequality, Brazilian higher education still faces structural barriers that limit its ability to transform people’s lives. According to the OECD, the challenge is to expand access, improve quality, and increase the relevance of degree programs, ensuring that public investment translates into lasting social and economic impact.

Source: Agência Brasil.

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  • Educational Management
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