Efficiency in the Transformation of Schooling Into Competences: A Cross-Country Analysis Using PIAAC Data

Abstract

This study (i) compares the competence levels of the adult population in a set of OECD countries; (ii) assesses the comparative efficiency with which the education system in each country transforms schooling into competences, distinguishing by educational level, and (iii) tracks the evolution of this efficiency by birth cohorts. Using PIAAC data, the paper applies standard parametric frontier techniques under two alternative specifications. The results obtained under both specifications are similar and identify Finland, Sweden, Denmark and Japan as being the most efficient and Spain, the United Kingdom, Italy, Ireland and Poland as the least efficient. The evolution of the efficiency levels by age cohorts shows that higher education is more efficient for younger cohorts, while lower and upper secondary education present a stable trend over cohorts.