Measuring the Efficiency of Educational Institutions: Evidence from Primary and Secondary Public Schools in the Philippines

Abstract

In the economics of education, an educational institution is considered as a firm that transforms inputs into outputs. It is similar to a production line wherein efficient returns are expected. An education system is efficient if it can achieve the best outcomes by maximizing the available resources. Determining how schools perform in terms of their efficiency may suggest ways to improve education outcomes for a given level of resources. The general objective of this study is to analyze the efficiency of an educational institution. This study employed a Poisson stochastic frontier analysis to formulate education production functions for the number of examinees achieving at least a minimum overall proficiency level. The model was also used to estimate the technical efficiency scores of some selected public schools. Technical inefficiency models were also constructed to identify predictors of inefficiency among public schools. In the case of the public schools in the Philippines, regional characteristics, school characteristics such as the presence of electrical supply, a higher number of Mathematics teachers, and community characteristics contribute to lowering inefficiency in public schools.