The Efficiency of Educational Production

A Comparison of the Nordic Countries with other OECD Countries

Peter Bogetoft, Eskil Heinesen, Torben Tranæs

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Focusing in particular on upper secondary education, this paper examines whether the relatively high level of expenditure on education in the Nordic countries is matched by high output from the educational sector, both in terms of student enrolment and indicators of output quality in the form of graduation/completion rates and expected earnings after completed education. We use data envelopment analysis (DEA) to compare (benchmark) the Nordic countries with a relevant group of rich OECD countries and calculate input efficiency scores for each country. We estimate a wide range of specifications in order to analyse different aspects of efficiency. In purely quantitative models (where inputs and outputs are expenditure and number of students at different levels of the educational system) and in models where graduation or completion rates are included as indicators of output quality, Finland is the most efficient Nordic country (often fully efficient), whereas Sweden and especially Norway and Denmark are clearly inefficient. However, using PISA test scores as indicators of student input quality in upper secondary education reduces the inefficiencies of these three countries. Also, when expected earnings after completed education are used as an indicator of output quality, all Nordic countries are estimated to be fully efficient (or nearly so).
Original languageEnglish
JournalEconomic Modelling
Volume50
Issue numberNov.
Pages (from-to)310-321
Number of pages12
ISSN0264-9993
DOIs
Publication statusPublished - 2015

Cite this

@article{646d6fdfa0aa4dbeaa1d267558cb0bf3,
title = "The Efficiency of Educational Production: A Comparison of the Nordic Countries with other OECD Countries",
abstract = "Focusing in particular on upper secondary education, this paper examines whether the relatively high level of expenditure on education in the Nordic countries is matched by high output from the educational sector, both in terms of student enrolment and indicators of output quality in the form of graduation/completion rates and expected earnings after completed education. We use data envelopment analysis (DEA) to compare (benchmark) the Nordic countries with a relevant group of rich OECD countries and calculate input efficiency scores for each country. We estimate a wide range of specifications in order to analyse different aspects of efficiency. In purely quantitative models (where inputs and outputs are expenditure and number of students at different levels of the educational system) and in models where graduation or completion rates are included as indicators of output quality, Finland is the most efficient Nordic country (often fully efficient), whereas Sweden and especially Norway and Denmark are clearly inefficient. However, using PISA test scores as indicators of student input quality in upper secondary education reduces the inefficiencies of these three countries. Also, when expected earnings after completed education are used as an indicator of output quality, all Nordic countries are estimated to be fully efficient (or nearly so).",
keywords = "Data envelopment analysis, Benchmarking, Upper secondary education, International comparisons",
author = "Peter Bogetoft and Eskil Heinesen and Torben Tran{\ae}s",
year = "2015",
doi = "10.1016/j.econmod.2015.06.025",
language = "English",
volume = "50",
pages = "310--321",
journal = "Economic Modelling",
issn = "0264-9993",
publisher = "Elsevier",
number = "Nov.",

}

The Efficiency of Educational Production : A Comparison of the Nordic Countries with other OECD Countries. / Bogetoft, Peter; Heinesen, Eskil; Tranæs, Torben.

In: Economic Modelling, Vol. 50, No. Nov., 2015, p. 310-321.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - The Efficiency of Educational Production

T2 - A Comparison of the Nordic Countries with other OECD Countries

AU - Bogetoft, Peter

AU - Heinesen, Eskil

AU - Tranæs, Torben

PY - 2015

Y1 - 2015

N2 - Focusing in particular on upper secondary education, this paper examines whether the relatively high level of expenditure on education in the Nordic countries is matched by high output from the educational sector, both in terms of student enrolment and indicators of output quality in the form of graduation/completion rates and expected earnings after completed education. We use data envelopment analysis (DEA) to compare (benchmark) the Nordic countries with a relevant group of rich OECD countries and calculate input efficiency scores for each country. We estimate a wide range of specifications in order to analyse different aspects of efficiency. In purely quantitative models (where inputs and outputs are expenditure and number of students at different levels of the educational system) and in models where graduation or completion rates are included as indicators of output quality, Finland is the most efficient Nordic country (often fully efficient), whereas Sweden and especially Norway and Denmark are clearly inefficient. However, using PISA test scores as indicators of student input quality in upper secondary education reduces the inefficiencies of these three countries. Also, when expected earnings after completed education are used as an indicator of output quality, all Nordic countries are estimated to be fully efficient (or nearly so).

AB - Focusing in particular on upper secondary education, this paper examines whether the relatively high level of expenditure on education in the Nordic countries is matched by high output from the educational sector, both in terms of student enrolment and indicators of output quality in the form of graduation/completion rates and expected earnings after completed education. We use data envelopment analysis (DEA) to compare (benchmark) the Nordic countries with a relevant group of rich OECD countries and calculate input efficiency scores for each country. We estimate a wide range of specifications in order to analyse different aspects of efficiency. In purely quantitative models (where inputs and outputs are expenditure and number of students at different levels of the educational system) and in models where graduation or completion rates are included as indicators of output quality, Finland is the most efficient Nordic country (often fully efficient), whereas Sweden and especially Norway and Denmark are clearly inefficient. However, using PISA test scores as indicators of student input quality in upper secondary education reduces the inefficiencies of these three countries. Also, when expected earnings after completed education are used as an indicator of output quality, all Nordic countries are estimated to be fully efficient (or nearly so).

KW - Data envelopment analysis

KW - Benchmarking

KW - Upper secondary education

KW - International comparisons

UR - http://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=954921382814

U2 - 10.1016/j.econmod.2015.06.025

DO - 10.1016/j.econmod.2015.06.025

M3 - Journal article

VL - 50

SP - 310

EP - 321

JO - Economic Modelling

JF - Economic Modelling

SN - 0264-9993

IS - Nov.

ER -