Study on the efficiency and effectiveness of public spending on tertiary education

Abstract

The purpose of the study is to assess efficiency in public tertiary education systems across EU countries plus Japan and the US with semi-parametric methods and stochastic frontier analysis. The study identifies a core group of efficient countries. A good quality secondary system, output-based funding rules, institutions' independent evaluation and staff policy autonomy are positively related to efficiency. Moreover, the study provides evidence that public spending on tertiary education is more effective in what concerns labour productivity growth and employability when it is coupled with efficiency.

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