Estimation of Education Production Function: A Case Study of Selected Villages in District Nowshera, Khyber Pakhtunkhwa, Pakistan

Abstract

Education production function relates school, teacher and student inputs to measure the student output. The objective of this study is to investigate the determinants of educational outcome in the study area by estimating an education production function for Government and Private higher secondary schools in Nowshera. Education plays an essential and important role in the development process, as a high-quality of education system is a key element by which a developing country can expands skills, knowledge and capacities of individuals, thus, increasing stock of human capital. Human capital is a key element in economic progress and raising standard of living. Pakistan is perhaps the country of the world for which efficiency in education is most important, as policymakers are faced with the combination of a rapidly growing population, low level of education and limited resources. Without high quality educational system and an accurate understanding of the determinants of educational outcomes, it will be difficult to enhance efficiency. For this purpose, cross sectional data and OLS was used to specify production function, using annual examination scores as output (dependent variable), while using school inputs, student characteristics, family background and teacher characteristics are as inputs (independent variables) in the private and public schools. Results of the study shows that student’s characteristics, teacher’s characteristics and family background except mother education, profession and income, has positive and statistical significant impact on students academic performances. The results of this study have important policy implications for Nowshera in particular and for Pakistan in general.