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School competition and efficiency in elementary schools in Mexico

Author

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  • Garcia-Diaz, Rocio
  • del Castillo, Ernesto
  • Cabral, René

Abstract

This paper examines how competition impacts the technical efficiency of schools. We model competition between schools using Geographical Information System (GIS) tools in order to develop a Herfindahl–Hirschman market concentration index (HHI) and then follow a stochastic frontier analysis with alternative specifications that enable us to obtain the best unbiased efficient estimators. We find three important results. First, a higher degree of competition from public and private schools significantly increases elementary school efficiency in Mexico, as measured by the outcomes in a nationwide standardized test. Second, we find a positive, though small, association between expenditure on education and school outputs. Third, private schools perform significantly better due to the differential incentives they face in terms of competition.

Suggested Citation

  • Garcia-Diaz, Rocio & del Castillo, Ernesto & Cabral, René, 2016. "School competition and efficiency in elementary schools in Mexico," International Journal of Educational Development, Elsevier, vol. 46(C), pages 23-34.
    • Handle: RePEc:eee:injoed:v:46:y:2016:i:c:p:23-34
    DOI: 10.1016/j.ijedudev.2015.09.015
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    References listed on IDEAS

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    Cited by:

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    2. Horrace, William C. & Rothbart, Michah W. & Yang, Yi, 2022. "Technical efficiency of public middle schools in New York City," Economics of Education Review, Elsevier, vol. 86(C).
    3. Lazaretti, Lauana Rossetto & Aniceto França, Marco Túlio, 2020. "School competition and performance indicators: evidence from the creation of federal education institutions in Brazil," International Journal of Educational Development, Elsevier, vol. 77(C).
    4. Doddy Ismunandar Bahari & Hermanto Siregar & Sahara Sahara & Handewi Purwati Saliem Rachman, 2019. "Impact of Agricultural Sectors and Income Inequality in Rural Toward Role of Public Education in Decreasing Educational Inequality in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 151-159.
    5. Bizenjo, Sikander, 2020. "Education in Pakistan: Are low-cost private schools closing the gender gap?," International Journal of Educational Development, Elsevier, vol. 77(C).

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    More about this item

    Keywords

    Competition; Stochastic production frontier; Efficiency; Spatial analysis; Panel data;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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