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Modelling university human capital formation and measuring its efficiency. Evidence from Florence University

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  • Guido Ferrari

Abstract

In this paper, an analysis of the technical efficiency in the formation of 2,236 graduates in 1998 in the University of Florence, that is, in the university human capital formation, is performed, by modelling the production process as one in which the student produces himself as a graduate. The tool utilized is the DEA methodology, under the hypothesis of variable returns to scale. The production factors are represented by a set of human and capital resources provided by the faculties, along with individual factors represented by secondary school diploma score and by the length of university study. The analysis is conducted both for the overall graduates, and at a faculty level, in order to emphasize the contribution provided by the latter to efficiency. There is evidence that the students graduated with an average efficiency greater than 90% and therefore with an unexploited productive capacity lower than 10%. At a faculty level, Formation Science appears to be the most efficient, whereas Economics is the less efficient one. By and large, the contribution to efficiency provided by faculties is greater than that brought by students individual characteristics.

Suggested Citation

  • Guido Ferrari, 2006. "Modelling university human capital formation and measuring its efficiency. Evidence from Florence University," Statistica, Department of Statistics, University of Bologna, vol. 66(3), pages 281-298.
  • Handle: RePEc:bot:rivsta:v:66:y:2006:i:3:p:281-298
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