Efficiency Assessment of Schools Operating in Heterogeneous Contexts: A Robust Nonparametric Analysis Using PISA 2015

Abstract

The present study proposes an international comparison of education production efficiency using cross-country data on secondary schools from different countries participating in PISA 2015. Given that the context in which schools are operating might be heterogeneous, we need to account for those divergences in the environmental conditions when estimating the efficiency measures of school performance. In this way, each school can be benchmarked with units with similar characteristics regardless of the country they belong to. For this purpose, we use a robust nonparametric approach that allows us to clean the effect of contextual factors previously to the estimation of efficiency measures. Since this approach needs smoothing in the conditional variables in the middle of the sample and not at the frontier (where the number of units is smaller), it seems to be a better option than other nonparametric alternatives previously developed in the literature to deal with the effect of external factors. Likewise, by using this novel approach, we will also be able to explore how those contextual factors might affect both the attainable production set and the distribution of the efficiencies.