School competition and efficiency in elementary schools in Mexico
Rocio Garcia-Diaz, Department of Economics, Tecnológico de Monterrey, Mexico ; Ernesto del Castillo, EGAP Government and Public Policy, Tecnológico de Monterrey, Mexico ; René Cabral, EGADE Business School, Tecnológico de Monterrey, Mexico
International Journal of Educational Development Volume 46, Number 1, ISSN 0738-0593 Publisher: Elsevier Ltd
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.
Garcia-Diaz, R., del Castillo, E. & Cabral, R. (2016). School competition and efficiency in elementary schools in Mexico. International Journal of Educational Development, 46(1), 23-34. Elsevier Ltd.