Decomposition of Total Factor Productivity into Efficiency Components: An Empirical Analysis of District Level School Performance

Abstract

Access to quality education is the intellectual right of every child, and it was first acknowledged in December 1948 in the Universal Declaration of Human Rights (UDHR). Recently, Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs) reinforced the importance of education as a universal right regardless of color, language, race, gender, economic condition, and social origin. It is possible to improve the quality of education by efficiently using inputs. This study aims to measure the performance so that it can analyze how much chance of improvement is available. The total factor productivity uses the inputs and output at the district and then at the individual school student level, decomposed into its efficiency components. This study implements Data Envelopment Analysis (DEA) using the DPIN software for the analysis. Panel information from 2013 to 2016 of the 112 districts is used for this study. Technical, mix, and scale mix efficiency is calculated, and the determents that can explain the difference in the performance are measured. Results show that the health and education index are the key indicators that can explain the high performance of some districts. Whereas the living standard shows a negative effort on efficiency.