Efficiency Analysis of Public and Private Sector Schools of Multan District: A Non-Parametric Approach

The purpose of this paper is to evaluate the efficiency of public and private sector secondary and higher secondary schools in Multan district. We use output oriented data envelopment analysis to measure technical and scale efficiency of a sample of 100 public and private sector schools, using data for the year 2014. DEA is employed to compare efficiency of both types of schools because it is the most popular technique used to measure the relative efficiency of non-profit organizations due to the absence of prices or relative values of educational outputs. Moreover, it can handle multiple inputs and outputs with great ease. As public and private schools are working under similar environmental conditions, we have used a single frontier, incorporating four educational inputs and four outputs. The results of the data demonstrate that public schools lag behind private schools in terms of CRS and VRS technical efficiency scores and scale efficiency scores. Our study of schools validates the dominant paradigm that private schools outperform the state-run institutes.