Efficiency of local public education in a decentralized context

Abstract

This paper estimates the local efficiency of the public provision of education in Colombia between 2008 and 2013. Since the decentralization process in 1991, local authorities have spent an increasing amount of resources in the provision of education services. The empirical analysis relies on a multiproduct function that assesses public performance considering two types of education products: quality and enrolment. Results for Colombian municipalities show efficiencies that vary between 26% and 98%, suggesting that better results in quality and enrolment in public education could be accomplished using the same resources. Possible sources of inefficiency are explored, such as institutional environment and fiscal autonomy. Differing regional patterns are observed for the cases of education quality and enrolment.