The Robust Efficiency Estimation in Lower Secondary Education: Cross-Country Evidence

Abstract

In this study, we assessed the efficiency of compulsory lower secondary education. We selected three variables that may significantly affect students’ performance in a particular country. First, we assumed that student scores achieved in PISA testing determine the number of monetary funds spent on these three variables, specifically student–teacher ratio, class size, and the annual number of hours spent in school. Second, we evaluated the efficiency of education in a sample of 24 different OECD countries, comparing the students’ performance in PISA 2018. Third, we used the two-stage data envelopment analysis with a bootstrapping procedure for estimating technical efficiency scores. Finally, we applied OLS and quantile regression, where our regression estimates in both models showed a positive effect of GDP per capita on students’ achievement across countries. The positive impact of GDP per capita was significant only for the least efficient countries. Conversely, the level of impact of parental education was much stronger and more positive for the inefficient countries and proved to be negative for more efficient countries.

Keywords

• education
• human capital
• data envelopment analysis
• bootstrapping
• quantile regression
• correlation analysis